A California employment lawsuit against ride-sharing service Lyft was settled with an interesting compromise.
Workers involved in the class-action lawsuit asserted they were in fact employees, entitled to all the legal protections that entails. However, the mobile app argued the drivers were independent contractors, meaning they wouldn’t be entitled to minimum wage, workers’ compensation, overtime and other benefits.
Now, Reuters reports the company has agreed to expand certain worker protections and it’s paying $12.25 million to the drivers who are party to the lawsuit. However, it has not agreed to label the drivers employees. For the business, this eliminates a significant threat to its business model, but it could still leave drivers in a vulnerable place. Continue Reading ›