From Fortune:
The company more than doubled its settlement proposal.
Ride-hailing company Lyft is making a second try at settling a class action lawsuit filed by drivers. This time, it’s upped its proposed payout to $27 million, according to documents filed on Wednesday in San Francisco federal court.
In January, Lyft attempted to settle a lawsuit by former drivers who claimed the company owed them expenses because it misclassified them as contractors instead of employees. Last month, a federal judge rejected a proposed $12.25 million settlement, saying it “shortchanged” drivers.
Under the new proposal, average “casual” Lyft drivers would receive about $131, while average “frequent drivers,” who drove an average of 700 hours, would receive about $2,000, according to court documents.
The company more than doubled its settlement proposal.
Ride-hailing company Lyft is making a second try at settling a class action lawsuit filed by drivers. This time, it’s upped its proposed payout to $27 million, according to documents filed on Wednesday in San Francisco federal court.
In January, Lyft attempted to settle a lawsuit by former drivers who claimed the company owed them expenses because it misclassified them as contractors instead of employees. Last month, a federal judge rejected a proposed $12.25 million settlement, saying it “shortchanged” drivers.
Under the new proposal, average “casual” Lyft drivers would receive about $131, while average “frequent drivers,” who drove an average of 700 hours, would receive about $2,000, according to court documents.
Lyft’s new settlement proposal comes after calculationsordered by the judge showed that its California drivers would have been owed $126 million if they were employees instead of independent contractors. Under the new proposal, Lyft drivers still remain contractors. Almost all the additional money will go to the drivers, the company said in a press release....MORE
