Lyft Pays $300,000 To Settle New York State Lawsuit
At present Lyft agreed to pay $300,000 to New York state to settle allegations that the on-demand experience service violated New York legal guidelines.
Final summer time NY Lawyer Common Eric Schneiderman, and former NY Superintendent of Monetary Providers Benjamin Lawsky sued Lyft for working illegally inside the state.
The go well with (embedded under) alleged that Lyft was working an unlicensed for-rent livery service inside New York. Moreover, Schneiderman and Lawsky accused Lyft of “operating an unlicensed insurance coverage enterprise in New York,” as the corporate was promoting group insurance coverage insurance policies on to drivers.
Along with the money settlement, Lyft would require its driver to hold insurance coverage issued by a state-approved insurer. Moreover, Lyft should proceed to adjust to all different state and municipal legal guidelines relevant to livery providers.
Whereas Lyft has been in compliance with each of those guidelines since launching in New York Metropolis, immediately’s announcement resolves all excellent authorized motion between Lyft and the state.
One of many causes Lyft has struggled to broaden all through New York is that the the state considers the corporate a for-rent livery supplier, which means drivers are required to carry business licenses. That is totally different from states like California, the place Lyft drivers don’t want business licenses.
The corporate issued the under assertion:
At the moment’s mutually agreed upon settlement doesn’t require any modifications to present Lyft service in New York. The settlement is a part of our continued efforts to return true, peer to see journey sharing to New York State at giant, an effort supported by leaders and shoppers throughout the state.