Sunday, April 2, 2017

Judge approves Lyft’s $27-million class-action settlement with drivers la times june 16

Judge approves Lyft’s $27-million class-action settlement with drivers la times june 16

Tracey Lien
 
Ride-hailing company Lyft is one step closer to settling a class-action lawsuit from drivers who want to be treated as employees after U.S. District Judge Vince Chhabria in San Francisco granted preliminary approval to a $27-million settlement.
The sign off comes after Chhabria rejected an initial settlement offer in April of $12.5 million, saying that it “shortchanged” drivers. He wrote in a finding Thursday that the new proposed settlement agreement “fixes the monetary flaws the court previously identified and enhances the non-monetary benefits at least to some degree."
ADVERTISING
Lyft agreed to make changes to its terms of service, including giving drivers warnings before they are deactivated and the ability to take up pay-related issues before a neutral arbitrator at Lyft’s expense.
"We are pleased the court has granted preliminary approval of the settlement, which maintains the classification of drivers as independent contractors and brings us one step closer to a final resolution,” said Chelsea Wilson, Lyft’s spokeswoman.
“Lyft drivers in California may now receive the benefits of the settlement rather than waiting years and risking not being able to proceed on a classwide basis and risking an adverse jury verdict,” said plaintiff attorney Shannon Liss-Riordan. 
The settlement does not decide whether Lyft drivers are employees or independent contractors, and leaves the matter open to future litigation. 
If the proposed settlement receives final approval, the $27 million will be paid out to an estimated 100,000 Lyft drivers in California. Those who have driven the most will receive the highest payments.
Class members will soon be notified of the preliminary approval and be given the opportunity to opt out or object. A final settlement hearing is expected later this year.
Receiving preliminary approval for the settlement is a win for Lyft because it means the company can avoid a costly trial, and it allows the company to continue its operations without having to classify its drivers as employees.
The San Francisco company built its business on independent contractors. Having to bring on drivers as employees would put the company on the hook for overtime payments, expense reimbursement, Social Security and other benefits, adding considerable expense and potentially affecting its $5.5-billion valuation. 
Lyft’s main competitor, Uber Technologies, is trying to settle a similar lawsuit. A proposed settlement of up to $100 million is currently before a U.S. district judge.
Twitter: @traceylien
ALSO
Posted by at No comments:

Judge gives final approval of $27-million settlement in Lyft class-action lawsuit la times march 17


Judge gives final approval of $27-million settlement in Lyft class-action lawsuit la times march 17

Ride-hailing company Lyft will pay $27 million to settle a class-action lawsuit brought by drivers who sought to be classified as employees, after a judge gave the agreement final approval Thursday.
Though the settlement results in payment to drivers and some changes to Lyft’s terms of service for drivers, it does not decide the question of whether drivers are employees or independent contractors.
ADVERTISING
That matter “will have to wait for another day,” said plaintiff attorney Shannon Liss-Riordan.
The settlement approved by U.S. District Judge Vince Chhabria in San Francisco covers drivers who worked for Lyft in California between May 25, 2012, and July 1, 2016. Drivers who have driven the most will receive the biggest payments.
A similar class-action lawsuit brought by drivers against Lyft rival Uber Technologies Inc. is still ongoing. Liss-Riordan is also the plaintiffs’ attorney in that case.
About 95,000 Lyft drivers have already submitted claims to be part of the settlement, and new claims are still being accepted, she said.
As part of the settlement, Lyft agreed to give drivers warnings before they are deactivated on the app and allow them to take pay-related issues before a third-party arbitrator at Lyft’s expense.
“We are very pleased to be at the end of this process,” Liss-Riordan said in a statement. “The settlement provides substantial benefit to Lyft drivers — both monetary and non-monetary.”
The settlement helps Lyft by averting a costly trial and allowing the company to keep operating without having to classify its drivers as employees, which would qualify them for benefits.
The San Francisco firm said in a statement that it was “pleased the court has taken the final step and approved the settlement agreement which will preserve the flexibility of drivers to choose when, where and for how long they drive with Lyft.”
Last April, Judge Chhabria rejected an initial settlement offer of $12.5 million, saying the amount “shortchanged” drivers. The current settlement agreement received preliminary approval last summer.
Though some have criticized the settlement amount as too little, Liss-Riordan said she thought it was an “excellent” settlement, especially for the pool of people who have driven the most miles for Lyft. The alternative, she said, could have been more uncertain.
Companies have increasingly tried to use arbitration clauses to prevent class-action lawsuits, she said, and the U.S. Supreme Court is set to take up the issue next term. It is widely believed justices are split on the question, meaning the new ninth judge could cast the tie-breaking vote, she said.
“The question about whether or not the drivers are properly classified as employees or independent contractors … getting an answer to that question would take a very long time, [and] would not be assured because it would have gone to a jury that may or may not have agreed with us,” she said.
Posted by at No comments:

la time s apr 2 17 comments uber lyft

By commenting, you agree to these terms. Please flag inappropriate comments.
Promoted Comments
y
  • 1 reply +
    #1 hkahn117
     31 points
    In layman's terms, lets destroy something that works.
      • 2 replies +
        #2 Tony Baloney
         27 points
        This is a crucial issue and should be used as a litmus test for democrats running for office at any level. Either you support increasing the power of workers or the employers. Simple as that.
          nicktoaks
          Newcomer30 points
          Posted by at No comments:
          Subscribe to: Posts (Atom)