After Uber's Lawsuit Settlements, What's Next For Drivers

— -- Uber has settled class action lawsuits with drivers in two U.S. states, offering to pay up to $100 million and agreeing to a set of new protocols. The move ends these court cases, which could have drastically changed the company's business model.

At issue was whether Uber drivers should be classified as employees, which would entitle them to additional benefits, according to the lawsuits brought on behalf of the drivers.

"Drivers value their independence —- the freedom to push a button rather than punch a clock, to use Uber and Lyft simultaneously, to drive most of the week or for just a few hours," Uber CEO Travis Kalanick said in a blog post on Thursday. "That’s why we are so pleased that this settlement recognizes that drivers should remain as independent contractors, not employees."

Under the terms of the agreement, Uber will pay the 385,000 drivers involved in the cases $84 million, according to a statement from Shannon Liss-Riordan, an attorney representing the drivers. An additional $16 million will be paid if Uber goes public, according to the statement.

"Importantly, the case is being settled — not decided," Liss-Riordan said in her statement. "This case, however, with this significant payment of money, and attention that has been drawn to this issue, stands as a stern warning to companies who play fast and loose with classifying their work force as independent contractors."

Along with the payment, Uber will also make some changes to its protocols. Kalanick said the company hasn't, "always done a good job working with drivers."

"For example, we don’t have a policy explaining when and how we bar drivers from using the app, or a process to appeal these decisions," he said in his blog post. "At our size that’s not good enough."

As part of the settlement, a new set of protocols will be implemented making it easier for drivers to learn their ratings and how they compare to their peers.

Uber will also post a driver deactivation policy and no longer deactivate drivers who regularly decline trips when logged into the Uber app, according to Liss-Riordan.

Perhaps the most passenger-facing change: Drivers will be allowed to put small signs in their cars stating that "tips are not included, they are not required, but they would be appreciated."

The settlement must now be approved by U.S. District Judge Edward Chen in San Francisco.