Judge Approves $27 Million Settlement In Lyft Class Action For California Drivers

Image courtesy of Lyft

The class action lawsuit filed on behalf of drivers against ride-hailing service Lyft is one legal step closer to resolution: the judge has approved the $27 million settlement, which is more than double the original $12.5 million proposal. Drivers in California for ride-hailing service Lyft will stay independent contractors, but at least they will receive cash settlements, and the service will change some policies that affect drivers.

There are about 163,000 current or former drivers who are eligible for the class action.. They will be offered the opportunity to take part in the settlement, object to it, or to opt out.

Non-monetary benefits of the settlement include a promise from the company not to fire drivers (really, deactivate their accounts on the app) with no reason given or recourse, and the company would have to cover drivers’ fees when a dispute goes to arbitration. Yes, that’s right: disputes would have to go to arbitration, but at least the drivers wouldn’t need to pay arbitrators themselves.

Drivers’ cash awards would be prorated according to the number of hours they’ve driven for the service: someone who has worked 2,000 hours, or driving full-time for almost a year, would receive at least $5,556.

The judge calculated that the actual amount owed to drivers could be as high as $170 million, including all vehicle expenses and other costs of not being employees.

Lyft’s $27 Million Accord With Drivers Wins Court Approval [Bloomberg News]

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