New York (CNN Business) Uber says it has reached settlements with a large majority of the 60,000 drivers in the United States who filed arbitration demands over their employment status.

Drivers and Uber disputed whether they should be considered employees of the company or independent contractors.

Their classification as independent contractors means drivers aren't entitled to rights employees receive, including a minimum wage, sick leave, or overtime. They're also not reimbursed for on-the-job expenses such as fuel.

Although Uber did not provide details of the settlement, the company said it continues to believe its drivers are independent contractors, not employees. And it claimed in its IPO paperwork that classifying drivers as employees instead of contractors would adversely affect its business.

Lyft LYFT The company argues that drivers decide on their own when they want to work for the company and they can work for competitors such asin addition to Uber.

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