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Lyft settles California driver lawsuit over employment status
Source: Reuters
Technology | Wed Jan 27, 2016 3:53am EST
Lyft settles California driver lawsuit over employment status
SAN FRANCISCO | BY DAN LEVINE AND HEATHER SOMERVILLE
Ride-hailing service Lyft has agreed to settle a proposed class action lawsuit in California by giving drivers additional workplace protections but without classifying them as employees, removing a major threat to its business model.
The settlement agreement, filed late on Tuesday in San Francisco federal court, provides for Lyft to pay $12.25 million, as well as give drivers notice if they are to be deactivated from the platform and other benefits.
Lyft and larger rival Uber face separate lawsuits brought on behalf of drivers who contend they are employees and entitled to reimbursement for expenses including gas and vehicle maintenance. The drivers currently pay those costs themselves.
The cases have been closely followed because a determination that the workers are employees instead of contractors could affect the valuations for other startups that rely on large networks of individuals to provide rides, clean houses and other services.
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Lyft settles California driver lawsuit over employment status
SAN FRANCISCO | BY DAN LEVINE AND HEATHER SOMERVILLE
Ride-hailing service Lyft has agreed to settle a proposed class action lawsuit in California by giving drivers additional workplace protections but without classifying them as employees, removing a major threat to its business model.
The settlement agreement, filed late on Tuesday in San Francisco federal court, provides for Lyft to pay $12.25 million, as well as give drivers notice if they are to be deactivated from the platform and other benefits.
Lyft and larger rival Uber face separate lawsuits brought on behalf of drivers who contend they are employees and entitled to reimbursement for expenses including gas and vehicle maintenance. The drivers currently pay those costs themselves.
The cases have been closely followed because a determination that the workers are employees instead of contractors could affect the valuations for other startups that rely on large networks of individuals to provide rides, clean houses and other services.
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Read more: http://www.reuters.com/article/us-lyft-drivers-settlement-idUSKCN0V50FR