Uber took a step toward victory for its business model yesterday when it reached a settlement with two classes of drivers from California and Massachusetts that will allow the company to continue classifying its drivers as independent contractors. Under the settlement, filed in federal court, Uber will pay $84 million to the plaintiffs. There will also be a second payment of $16 million if Uber goes public and its valuation increases one and a half times from its December 2015 financing valuation ($62.5 billion) within the first year of an IPO. Further, the company will institute a deactivation policy for drivers in the settlement states, which includes a “peer review” appeals process for deactivated (essentially, terminated) drivers. As part of that move toward supposed transparency, Uber will also provide Massachusetts and California drivers with more information about their individual rating and how it compares with their peers. The most significant part of this latest move is Uber’s preservation of the contractor label for its workforce, which allows the company to avoid steep expenses like benefits including workers’ comp. The settlement is still subject to approval from Judge Edward M. Chen.