Lyft Will Pay California Drivers Total Of $12.25M, Still Won’t Call Them Employees

(Lyft)

(Lyft)

The companies operating the two largest ride-hailing fleets, Uber and Lyft, both have lawsuits against them in California where drivers seek “employee” status. The lawsuit against Lyft has been settled, but only one part of it: the company has agreed not to terminate drivers without giving them a reason why, but will not grant them minimum wage, overtime pay, vehicle expense reimbursement, or any other benefits that they would get as employees.

Instead, the drivers’ attorneys decided to settle for the $12.25 million and an agreement not to fire drivers without cause. Drivers will share the settlement money on a prorated basis by how many hours they’ve driven during the relevant period.

While some early Uber drivers didn’t sign arbitration agreements with the company, which allows the class action against that company to go forward, Lyft has always required its drivers to agree not to sue the company.

In a statement, a Lyft spokesperson praised thee settlement for allowing drivers to keep their “flexibility” to choose their hours and how much time they’ll work. “We are pleased to have resolved this matter on terms that preserve the flexibility of drivers to control when, where and for how long they drive on the platform and enable consumers to continue benefiting from safe, affordable transportation,” the company said.
Lyft Agrees to Pay $12.25 Million to Settle Drivers’ Claims [Bloomberg]
Lyft settles California driver lawsuit over employment status [Reuters]