The fight over the classification of ride-sharing drivers as independent contractors appears to be over after Uber announced that it settled a pair of long-gestating lawsuits for $20 million. The resolution is a boon to Uber, which is preparing its initial public offering for later this year.
The initial case, O’Connor v. Uber, was first brought by a group of Uber drivers in 2013 who argued they should be categorized as employees rather than freelancers. By classifying drivers as contractors, Uber avoids providing benefits of traditional employment such as health insurance, paid sick time, and workers’ compensation, the drivers argued.
O’Connor v. Uber has been winding its way through the courts…
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