Uber will pay up to $100 million to settle labor suits

Uber has survived a major threat to its business model, settling two legal suits brought by drivers who sought to be classified as employe

es instead of independent contractors.

The ride-hailing firm will pay up to $100 million to the 385,000 drivers, but their employment status will not change.

The class actions were brought in California and Massachusetts. Uber, which is valued at up to $70 billion, is on the hook for a $84 million initial payment, and another $16 million if it goes public.

Under the terms of the settlement, Uber must give drivers more warning before they are removed from the service. The company is also required to establish an appeals process for divers who believe they have been unfairly terminated.

The settlement, which must be approved by a judge, allows for the creation of "driver associations" that will represent workers in talks with management.