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Lyft Agrees $12.25 million Settlement to Resolve Misclassification Complaint

Friday, January 29, 2016 | 1292 | 0 | 5 min read

Ride-hailing firm Lyft Inc. agreed to pay $12.25 million to resolve allegations it intentionally misclassified drivers as independent contractors without having to reclassify any workers, according to documents filed in the U.S. District Court for Northern California. Terms of the settlement outlined in a motion filed Jan. 26 asking the court to sign off on the deal would require Lyft to change its terms of service to remove a provision allowing it to fire – the settlement uses the phrase "deactivate" – a driver without notice. And it would require Lyft to pay arbitratio...

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