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Uber driver holding smartphone in car. Uber is an American company offering transportation services online. Photo: Shutterstock.com. Photo: Shutterstock.com

Ride-hailing company Uber Technologies Inc. agreed to pay $20 million to a class of drivers in a proposed settlement agreement Monday that could end more than five years of litigation over how the company classifies its drivers.

Uber drivers are considered independent contractors, rather than employees with traditional benefits like minimum wage, overtime and sick pay. But a slew of plaintiffs took issue with this, arguing the company was violating labor law to skirt costs by denying them benefits.

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Raychel Lean

Raychel Lean is ALM's Florida bureau chief, overseeing the Daily Business Review. Email her at [email protected] or follow her on Twitter via @raychellean.

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