Lyft Settles, but Drivers Will Remain Contractors

Advertisement
By Mike Isaac, The New York Times | Updated: 28 January 2016 17:30 IST
For more than two years, ride-hailing companies have fought with their drivers over their employment status. Now, one of those companies has found a way to bury the hatchet.

Lyft, a popular start-up based in San Francisco, agreed late Tuesday to settle a class-action lawsuit brought in 2013 by Lyft drivers in California. The drivers had sought to be recognized as full-time employees who would be eligible for benefits from the company, rather than as independent contractors.

Under the settlement, Lyft drivers will continue to be classified as contractors. Lyft agreed to pay $12.25 million (roughly Rs. 83 crores) to those represented in the suit and said it would provide some litigation benefits to drivers, as well as amend the terms of service to which drivers must agree when signing up with Lyft. The settlement is subject to court approval.

Advertisement

"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," Kristin Sverchek, Lyft's general counsel, said in a news release.

Shannon Liss-Riordan, the lawyer representing the drivers in the suit, said in a statement that the settlement would "provide substantial benefits to drivers and distribute reimbursement for some of the expenses they have incurred while driving for Lyft."

Under the terms of the agreement, for instance, Lyft agreed to pay any arbitration fees and other costs in future claims initiated by the company or drivers. Liss-Riordan said Lyft would no longer be able to fire drivers at will; it must show cause to do so.

The employment status of those who work for ride-hailing services and other on-demand companies has become a hot topic of debate.

Advertisement

Uber, Lyft's chief rival, remains embroiled in a similar class-action suit in California in which drivers are seeking full-time employee status.

© 2016 New York Times News Service

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Apps, Lyft
Advertisement

Related Stories

Popular Mobile Brands
  1. Redmi K100 Could Launch Soon at This Price: See Expected Specifications
  2. These Old Galaxy Flagships Are Getting the Stable One UI 9 Update
  3. iPhone Duo Screen Repair Costs Almost as Much as an iPhone 18 Pro
  4. Amazon Great Indian Festival 2026: Best Deals on Samsung Products
  5. Samsung Galaxy S27, Galaxy S27+ Could Miss This Selfie Camera Upgrade
  6. Here's When the Tecno Spark 50S 5G Will Launch in India: See Design
  7. Amazon Great Indian Festival 2026: Best Deals on LG Products
  1. iPhone Duo Screen Repair in India Costs Almost as Much as an iPhone 18 Pro
  2. DoT Mandates Caller Name Presentation for 5G and 4G Networks From Next Month
  3. iQOO Pad Pro 8.8 Launch Teased; Confirmed to Feature 9,020mAh Battery
  4. Oppo Reno 17 Design Spotted in Leaked Hands-On Image; Oppo Reno 17 Pro Unlikely to Launch in India
  5. Bitcoin Slips Below $81,000 as Hot US Inflation Revives Fed Rate Concerns
  6. Krafton Renames BGMI Lite to BGMI Air Ahead of Launch in India as Pre-Registrations Cross 10 Million
  7. Samsung Galaxy S27 and Galaxy S27+ to Launch Next Year With the Same Selfie Camera as Galaxy S26: Report
  8. Samsung Galaxy S23 Series, Galaxy Z Fold 5 Start Receiving One UI 9 Update Based on Android 17: Report
  9. Epic Games Releases New 'Vibe Coded' Epic Games Store Launcher in Preview, Faces Backlash Over Bugs
  10. Redmi K100 Launch Price Tipped Online Along With Key Specifications
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.