The following is an excerpt from Rachel Koning Beals | April 23, 2016 | MarketWatch.com |
The court settlement last week for ride-hailing firm Uber Technologies Inc. directly addressed a labor dispute over whether operators should be counted as independent contractors or employees, but it also indirectly impacts, at least a little bit, the confusing practice of tipping the service’s drivers.
The company said Thursday it has settled two closely watched class-action labor disputes covering 385,000 drivers in California and Massachusetts that will let Uber continue classifying drivers as contractors.
And as part of the settlement, Uber has agreed to notify customers more clearly that tips are not included in fares, which are paid through established electronic accounts. Drivers can now solicit cash tips by asking passengers directly or by posting signs in their vehicles.
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