Uber reportedly settles driver labor dispute for $100 million

Bryan Logan

Apr 22, 2016, 08:22 IST

REUTERS/Eduardo Munoz

Uber also has run into opposition in the United States. Pictured: An Uber driver looks out of his vehicle next to New York City Hall while Uber riders and driver-partners take part in a rally on steps of the City Hall against proposed legislation limiting for-hire vehicles in New York June 30, 2015.

Uber has reportedly reached a settlement agreement with its drivers in California and Massachusetts, The Wall Street Journal reported.

The $100 million settlement effectively staves off what could have been a massive legal fight over the employment classification of about 385,000 drivers in the two states.

According to The Journal, the settlement will allow Uber to continue recognizing drivers as independent contractors, not employees, and pay the drivers $100 million.

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The company will also be required to update its driver deactivation policies.

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