Lyft agrees to double California drivers' lawsuit settlement

A judge said that the original $12.25 million pay-out was too low.

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Mariella Moon
May 12, 2016 3:37 AM
Kārlis Dambrāns/Flickr
Kārlis Dambrāns/Flickr

Lyft has more than doubled its original offer to settle the class action lawsuit its drivers filed in California in an effort to be recognized as employees. The ride-sharing service has agreed to pay them $27 million after a San Francisco District judge deemed the original settlement amount of $12.25 million a bit too small. Under the original terms, every California driver who's put in at least 30 hours for the company is only getting an average of $1,000. Lyft was compelled to hash out new and more acceptable terms with the other party to finally make the lawsuit go away.

Despite the significantly higher amount, the settlement's other terms remain the same. Drivers working for Lyft will remain independent contractors and still won't be recognized as employees. Lyft promised that it will only terminate drivers for a number of predetermined reasons, though, including low passenger ratings. Further, those who consistently do well will be rewarded with bonuses.
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