Uber to pay up to $100 million to settle class-action lawsuits
Uber Inc. has agreed to give up to $100 million to its drivers and implement a number of significant policy changes to settle two class-action lawsuits, the lawyer representing Uber drivers announced.
Under the settlement terms of the two suits, Uber must pay $84 million to 385,000 drivers in California and Massachusetts. The company also agreed to pay an amount of another $16 million if its valuation increases one and a half times from its Dec. 2015 valuation with a year.
Shannon Liss-Riordan, the lawyer representing the drivers, said, “We are very pleased to announce that Uber has agreed to a historic settlement of the claims we have brought in California and Massachusetts for misclassifying its drivers as independent contractors.”
While the drivers will receive the money and be able to get more information about things like their quality rating, the company will keep categorizing the drivers as independent contractors, rather than employees.
The plaintiffs had argued that as Uber drivers, they should be classified as employees, and entitled to the benefits stipulated under the states' labor laws. But by being allowed to continue classifying drivers as independent contractors, Uber doesn't have to stump up the cost of these perks, driving down its operating costs and validating its business model.
The two lawsuits were brought in California and Massachusetts, but their effects will likely be felt across the nation, as well as by other ride-hailing companies, such as Lyft.
A homeowner in Southeast Portland shot and killed an intruder early Thursday morning, a spokesperson for the Portland Police Department said in a news release.
Air cargo carrier Cathay Pacific Airways announced on Thursday that it would launch twice a week service to Portland, offering a new route for Asia-bound exports.
A motor vehicle accident occurred Tuesday morning in Litchfield claimed two lives and left a teenager injured, the Kennebec County Sheriff's Office confirmed.
Sightings of motorcyclists zipping through traffic and splitting lanes are not rare in heavily populated cities like Los Angeles.
California State Attorney General Kamala Harris’ Office has confirmed that subpoenas have been issued to oil refiners as part of its investigation into unusually high gasoline prices in the state during last year.
A California bill designed to change how schools in the state retain and fire teachers fell short in its first legislative vote on Wednesday.