Lyft can pay $12.25 million to settle drivers' lawsuit in CA

Lyft will pay $12.25 million to settle drivers' lawsuit in CA

One firm is completed battling a gig financial system-associated lawsuit, no less than in California. Lyft has agreed to grant its drivers extra office safety and to pay $12.5 million to settle a proposed class motion lawsuit. The California drivers who filed the lawsuit towards the corporate needed to be reclassified as staff so as to obtain minimal wage and advantages, in addition to to get Lyft to pay for his or her fuel and car upkeep. Whereas they’ve sadly did not get their standing modified — they’re nonetheless thought-about contractors — drivers within the state will get a part of the settlement fund based mostly on the hours they’ve put into working for the corporate.

Lyft can also’t drop drivers each time it needs. The corporate can solely terminate somebody based mostly on various predetermined causes, reminiscent of low passenger scores. Even then, the driving force will probably be given the prospect to air their aspect of the story. Lastly, drivers who persistently get excessive scores and who passengers pinpoint as their favorites might be rewarded with bonuses.

Jackdaw Analysis chief analyst Jan Dawson informed Reuters that whereas Lyft is dropping hundreds of thousands, it nonetheless received off “pretty calmly.” Reclassifying drivers as staff, he stated, would have value the corporate a lot, far more. Uber wasn’t capable of forestall an identical case from turning into a full-fledged class motion lawsuit, however this proves it is potential to settle with the plaintiffs with out altering how the corporate operates.

[Image credit: Justin Sullivan/Getty Images]

Supply: Reuters, Bloomberg
Protection: Wired