Uber has settled two potentially devastating class-action lawsuits centered around the employment status of its drivers. The two cases, one in California and one in Massachusetts, argued that Uber's drivers were company employees, and should therefore be entitled to employee benefits like expenses, holiday pay and other allowances. The news also comes just days after Apple co-founder Steve Wozniak slammed Uber, saying that it does not pay its drivers enough money, and that he preferred to use Lyft instead. Uber argued that the drivers were independent contractors, and therefore exempt from many employee rights. A defeat in either case would have obliged Uber to conform to more stringent guidelines regarding how it treats its drivers. Instead, the two parties have agreed on an out-of-court settlement to the value of $84 million (58 million). Uber will also pay the plaintiffs a further $16 million (11 million) if the company carries out its IPO, but only if its stock increases in value by more than 150 per cent in its first year. In addition to this, Uber will be working to address driver concerns in the future. The company will establish drivers' associations in both Massachusetts and California, and will meet with them every quarter to discuss any issues and complaints they have.

Drivers will also receive more information about their personal ratings and those of their peers, and Uber will publish its deactivation policy, which explains why drivers get banned from using the app. Uber has pledged to be more forgiving with its drivers, too. Rather than instantly banning drivers who decline too many trips, the company will instead try and work with them, letting them know when there is an issue, and trying to resolve it amicably. "Six years ago when Uber first started in San Francisco, it was easy to communicate with the handful of drivers using the app," wrote co-founder and CEO Travis Kalanick. "Austin Geidt, who ran marketing, called each one regularly to get their feedback and make sure things were working well. It was clear from those early conversations that drivers really valued the freedom Uber offered." "As we've grown we've gotten a lot right - but certainly not everything. This new deactivation policy is an important step forward when it comes to working with drivers." 02/10/15: US Department of Revenue reverses Uber employment ruling The Florida Department of Revenue has deemed Uber drivers to be independent contractors, rather than employees. The agency originally decided that drivers were employees, after ex-Uber driver Darren McGillis applied for unemployment benefits following his account's termination. Uber contested the ruling, holding a telephone hearing on 17 August. The appeal was successful, and the department has now reversed its classification of McGillis. Whether this will have any material impact on the class-action lawsuit currently making its way through California courts is yet to be seen. 17/09/15: Uber is set to appeal against a class action lawsuit, saying a number of the points brought up in the case were incorrect and calling the ruling "manifestly erroneous." The appeal will outline that the three drivers who brought the case should not be thought of as employees of the company, as they claim they should be, saying such a decision could cause long-term damage to its so-called 'sharing economy'.