Ride-hailing company Uber has agreed to pay $20 million to settle lawsuits contesting the company’s classification of its drivers as independent contractors and not full employees, Bloomberg News reported on Tuesday.
The settlement comes after the 9th U.S. Circuit Court of Appeals ruled that Uber’s arbitration agreements, which force drivers who have pay disputes with Uber to settle in neutral arbitration rather than in court, were mostly enforceable.
“Uber has an arbitration clause which it very rigorously enforces,” Shannon Liss-Riordan, an attorney for the drivers, told Bloomberg. “It’s a myth that these opt-out provisions in arbitration clauses really make these agreements voluntary.”