Uber will pay $20 million to its drivers in California and Massachusetts to settle a class-action lawsuit that raised the question of what responsibility the company has to its workers.
Lawyers for Uber said in a court filing March 12 that they had agreed to a settlement with thousands of drivers. U.S. District Judge Edward Chen is set to hear the two sides’ motion on the preliminary settlement on March 21 in his San Francisco courtroom. Ultimately he will decide whether the settlement can go forward.
While the deal won’t end the longstanding and thorny question of whether Uber’s drivers are employees or contractors, the settlement likely will resolve the lawsuit that has forcefully pushed this question into court.