Uber Offers $1.3M to Settle Nationwide Driver Lawsuit

Uber Technologies Inc. agreed to pay $1.3 million to settle a nationwide lawsuit accusing it of misclassifying its drivers as independent contractors instead of employees.

If approved, the Oct. 16 agreement would resolve a collective action under federal wage law that was joined by more than 5,000 drivers who had opted out of Uber’s arbitration program.

Michael Hood sued Uber in North Carolina federal court in 2016, alleging the company should have categorized drivers as employees, which would have entitled them to minimum wage, overtime, and other legal protections.

Hood said in settlement filings that the $1.3 million deal is ...