For more than two years, ride-hailing companies have fought with their drivers over the drivers’ employment status. Now, one of those companies has found a way to bury the hatchet. Lyft, a popular start-up based in San Francisco, agreed late Tuesday to settle a class-action lawsuit brought in 2013 by Lyft drivers in California.
John Sciulli / Getty Images for Lyft Drivers suing Lyft as part of a class action lawsuit in California settled their complaint outside of court on Tuesday. The $12.25 million settlement does not reclassify the more than 100,000 Lyft drivers in the class as employees, which the attorney in the case, Shannon Liss-Riordan, said she had âhoped forâ in her statement. The drivers will continue …
SAN FRANCISCO (Reuters) – 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, according to a court filing late on Tuesday. The settlement, which would have to be approved by a San Francisco federal judge, provides for Lyft to pay $12.25 million, as well as give …
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 …
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 …