Tuesday, March 1, 2016

Lyft To Pay $12.25 million in Class-Action Worker Misclassification Suit

Lyft -- an on-demand transportation company comparable to Uber -- has reached a settlement in a class-action case that alleged worker misclassification.  The suit, which maintained that Lyft drivers were improperly treated as independent contractors rather than employees, now has a proposed settlement that would pay workers $12.25 million, as well as give them certain protections from termination.  From an article about the settlement at CNN/Money:

"Lyft's $12.25 million settlement fund will benefit the more than 100,000 California Lyft drivers who have driven at least once for the company. Their exact payout will depend on how many hours they worked for Lyft."

The settlement still needs to be approved by the court, but it serves as a cautionary red flag to other employers that oversee workers in the on-demand economy.  Class-action cases have already been filed against many of these companies.

-Joe Seiner


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