Uber reaches $100m settlement in fight with drivers, who will stay contractors

Ride-hailing service will settle a class-action suit with drivers in California and Massachusetts, avoiding a trial that could have reclassified them as employees

Uber has agreed to settle a class-action lawsuit with its California and Massachusetts drivers for up to $100m, avoiding a jury trial that could have reclassified contractors as employees and was expected to determine the fate of the so-called gig economy.

The proposed settlement - which must be approved by a judge - would allow the ride-hail app to continue classifying drivers as independent contractors though it will make some changes to their working conditions.