SAN FRANCISCO Ride-hailing service Lyft has agreed to settle a proposed class action lawsuit in California by giving drivers additional workplace protections but without classifying them as employees, removing a major threat to its business model. The settlement agreement, filed late on Tuesday in San Francisco federal court, provides for Lyft to pay $12.25 million, as well as give drivers …
* Author: Davey Alba.Davey Alba Business * Date of Publication: 01.26.16.01.26.16 * Time of Publication: 1:52 pm.1:52 pm Uber Using Phone Data To Track How Fast Drivers Are Going Ride-hailing giant Uber says it’s using smartphone gyrometer data to double-check if drivers on its platform are speeding. At least, it does for a portion of its drivers on a new pilot program. Joe Sullivan, Uber’s …
The drivers in the class action lawsuit had sought to be classified as employees, rather than independent contractors. Lyft drivers in California will remain independent contractors. That’s the takeaway from a settlement Tuesday between the popular ride-hailing service and its drivers.
It looks like Uber drivers in California will have their day in court, as Bloomberg reports that the ride share company couldnât convince the U.S. Court of Appeals in San Francisco to halt a major class-action trial. Uber wanted to pause the trial as it seeks to challenge a ruling in December that added 100,000 new names to the class action suit. Without the ability to stop the proceedings, …
On Tuesday, Lyft agreed to settle a proposed class-action lawsuit with its drivers in California. Lyft agreed to pay $12.25 million to its drivers in the settlement, which is subject to the approval of a San Francisco federal judge. Both Lyft and its ride-hailing rival Uber have faced separate lawsuits from drivers in San Francisco federal court.
Daniel Acker/Bloomberg via Getty Images
On Tuesday, Lyft agreed to settle a proposed class-action lawsuit with its drivers in California. Lyft agreed to pay $12.25 million to its drivers in the settlement, which is subject to the approval of a San Francisco federal judge. Both Lyft and its ride-hailing rival Uber have faced separate lawsuits from drivers in San Francisco federal court.
Lyft also can’t drop drivers whenever it wants. The company can only terminate someone based on a number of predetermined reasons, such as low passenger ratings. Even then, the driver will be given the chance to air their side of the story.
In the ongoing legal battles over worker misclassification in the on-demand economy, tech companies are taking different approaches to make the lawsuits go away. They can fight, as Uber is currently doing in San Francisco’s federal court; the case is expected to go to trial this year. They can give in, as many smaller delivery companies have done, reclassifying their workers as employees …
Lyft will not have to reclassify its drivers as employees after reaching a settlement yesterday, in which it agreed to pay $12.25 million extra in compensation and benefits. Uber is facing a similar lawsuit from its drivers, but a quirk in the litigation could make the outcome way worse for the world’s biggest ride-hail company. In challenging their status as independent contractors, Lyft’s …
Ride-hailing service Lyft has agreed to settle a proposed class action lawsuit in California by giving drivers additional workplace protections but without classifying them as employees, removing a major threat to its business model. The settlement agreement, filed late on Tuesday in San Francisco federal court, provides for Lyft to pay $12.25 million, as well as give drivers notice if they are …