#68: Uber Settles a Lawsuit

April 26, 2016

Last week, Uber settled a class-action lawsuit alleging that the company misclassified its drivers as independent contractors rather than employees. While the settlement carries no legal precedent, it does mean that Uber can continue with its current business model while paying out up to $100 million to the plaintiffs — with $25 million alone going to attorney Shannon Liss-Riordan, who has sued several gig-economy companies. The rest will be split among roughly 385,000 drivers in California and Massachusetts who can expect an average of $80 each in winnings. Uber also agreed to increase transparency around its driver ratings and deactivation policies, among other concessions. Jared Meyer, a research fellow at the Manhattan Institute, joins to discuss the settlement and what it means for the gig economy going forward.

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