Lyft settles California driver lawsuit over employment status

[FrodosPet]

Things have gotten about about half a micron better for rideshare drivers.

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http://www.reuters.com/article/us-lyft-drivers-settlement-idUSKCN0V50FR

BY DAN LEVINE AND HEATHER SOMERVILLE
Wed Jan 27, 2016 11:59am EST

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.

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As part of the settlement, Lyft has agreed that it can only deactivate drivers for specific reasons, like low passenger ratings. Drivers will be given an opportunity to address those issues before they are deactivated, according to the court filing.

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