Lyft agrees to pay $27 million to settle driver classification lawsuit

(credit: Kãrlis Dambrãns)

About 200,000 former and current Lyft drivers in California and their lawyers are to divvy up a combined $ 27 million under the settlement of a class action. The lawsuit involved the drivers’ classification as hired contractors and not employees. Attorneys are to get about $ 3.6 million of the pot.

However, even under the deal that was approved Thursday by a San Francisco federal judge, drivers will continue to work as independent contractors. That means they must pay for their own gas and other expenses. They are still not covered under minimum-wage laws and are not entitled to unemployment insurance and other benefits.

Both Uber, which is involved in a similar class action lawsuit, and Lyft classify drivers as contractors because the companies’ profits would be hit hard if they reclassified their drivers as employees.

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Ars Technica

Post Author: martin

Martin is an enthusiastic programmer, a webdeveloper and a young entrepreneur. He is intereted into computers for a long time. In the age of 10 he has programmed his first website and since then he has been working on web technologies until now. He is the Founder and Editor-in-Chief of BriefNews.eu and PCHealthBoost.info Online Magazines. His colleagues appreciate him as a passionate workhorse, a fan of new technologies, an eternal optimist and a dreamer, but especially the soul of the team for whom he can do anything in the world.

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