Menu
Lyft agrees to more than double payment to drivers in court settlement

Lyft agrees to more than double payment to drivers in court settlement

The ride-hailing company will pay $27 million instead of an earlier $12.25 million

Lyft has agreed to pay US$27 million to settle a dispute with drivers in California, under pressure from the judge who found the earlier proposed payment of $12.25 million was too small.

The ride-hailing company and its rival Uber Technologies are keen to settle with the drivers in class-action lawsuits, without having to agree to their reclassification as employees, which would push up their costs.

The companies currently classify their drivers as independent contractors, which does not require them to pay the drivers benefits such as reimbursement in work-related expenses.

A filing by the lawyer for the drivers in another lawsuit in a California court suggests that Uber could have to pay over $700 million in mileage expense reimbursement and phone expenses between 2009 and April of this year, if its drivers in California and Massachusetts were classified as employees. Uber has contested the figure.

A current settlement proposal, which still needs the approval of the judge, would require Uber to pay the drivers $84 million with a subsequent top-up of $16 million depending on the company’s valuation if it goes public.

The new amount payable by Lyft represents roughly 17 percent of the maximum value of the class's reimbursement claim, as suggested by District Judge Vince Chhabria, according to a filing on Wednesday,

Under the revised settlement submitted to the U.S. District Court for the Northern District of California, the crucial driver reclassification issue will again not be addressed.

The app-based ride hailing company had earlier offered a $12.25 million settlement fund, including attorney fees and other costs, besides non-monetary relief to the about 100,000 drivers. The non-monetary benefits such as prevention of arbitrary termination continue under the new settlement.

Drivers affiliated to the Teamsters Union had objected to the earlier settlement, as they said it would continue to "misclassify" Lyft employees in California as independent contractors.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments