A federal judge in California has rejected a proposed settlement between Uber Technologies and drivers in Massachusetts and California, in lawsuits that claimed that they should be classified as employees with full benefits rather than as independent contractors.
The ride-hailing company has insisted that its model, based around freelance contractors over whom it says it has minimal control, gives drivers flexibility to choose when to work and be their own bosses. Recognizing the drivers as employees would require the ride-hailing company to pay them benefits, which would push up its cost of operation.
