Judge Approves $27M Settlement in Lyft Class-Action Suit

A judge in San Francisco on Thursday approved a $27 million settlement in a class-action lawsuit against Lyft Inc., ending a years-long battle over the company’s independent-contractor status for drivers. U.S. District Judge Vince Chhabria had previously rejected a $12.25 million settlement offer from the company, saying it “shortchanged” the drivers. Lyft drivers had filed a class-action suit against the company in 2013 in a bid to drop their independent-contractor status and become official employees, a move that would ensure they didn’t have to cover work expenses out of pocket. The settlement deal keeps the drivers as independent contractors, and Chhabria conceded that the agreement was far from ideal. “The agreement is not perfect. And the status of Lyft drivers under California law remains uncertain going forward,” he said. Lyft has more than 700,000 drivers in the U.S., and they have to pay for gasoline and vehicle maintenance themselves due to their status. Attorney Shannon Liss-Riordan, who represented the drivers in the class-action suit, said she was satisfied with the agreement, adding that the drivers’ fight to be classified as employees “will just have to wait for another day.”