Uber drivers remain independent contractors as class action lawsuit settled

April 22, 2016 12:34 PM

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(Reuters) – Uber has agreed to pay up to $100 million to settle a class-action lawsuit which resolves a major challenge to its business model by allowing the ride-hailing service to keep its California and Massachusetts drivers as independent contractors.

The lawsuit had claimed that Uber [UBER.UL] drivers are employees and thus entitled to reimbursement of expenses.

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