Driver classification lawsuit settled Uber

By Staff Reporter Mar 16, 2019 10:23 AM EDT

Uber reached a $20 million preliminary settlement agreement Monday in a class action lawsuit over how the company classifies its drivers.

The case involved drivers from California and Massachusetts who disagreed with Uber's policy of classifying its drivers as independent contractors. Classifying drivers as contractors lowers costs for Uber by avoiding employee benefits like minimum wage and overtime.