Judge Approves $27 Million Settlement In Suit Against Lyft Featured

  17 March 2017

A federal judge approved a $27 million settlement for more than 200,000 current and former California drivers of the Lyft, Inc., an agreement that increases their protection against dismissals but does not resolve their employment status.

 The drivers sued Lyft for classifying them as independent contractors, which required them to pay for gas and other work expenses and left them without protection for minimum wage, unemployment insurance and collective bargaining. The drivers alleged that Lyft dictates their fares, routes and reimbursement, and requires them to greet passengers with a “smile and a fist bump.” Lyft countered that drivers choose their own work hours and decide which passengers to accept. The settlement allows Lyft to continue to describe the drivers as contractors, but leaves the classification issue open for a possible future case. The drivers would be allowed to challenge dismissals before an arbitrator. Read more here.