Judge Questions the $12M Lyft Driver Class Action Settlement

A California federal judge wants several questions answered before signing off on a $12 million settlement reached after a proposed class action lawsuit accused Lyft of misclassifying drivers as independent contractors.

U.S. District Judge Vince Chhabria listed one-dozen questions that he’s asked both parties to clarify regarding the Lyft class action settlement and its impact on drivers.

Judge Chhabria wants to know how much financial award each Lyft driver will receive, between Class Members who work 30 hours or more per week and those who drive less.

In addition, the judge seeks clarification regarding the nature of the original class action lawsuit which accused the ride-sharing, smartphone app company of declaring drivers as independent contractors rather than employees.

According to Judge Chhabria, the Lyft settlement appears to be moving drivers closer to independent contractor status, which he questions whether or not the court can even approve an agreement that might be contrary to the initial goal of the lawsuit.

The judge asked both parties to find case law that would back-up the decision to approve a settlement that may conflict with the intent of the case.

Lyft agreed to pay $12 million to settle the driver class action lawsuit last month. In addition to financial award, the mobile app company also agreed to make certain policy changes such as no longer having the ability to terminate drivers “at-will,” but rather only for a specific reason.

Judge Chhabria questions what the practical impact of this change would be, “What is the evidence that Lyft previously terminated people for reasons other than those for which Lyft will be permitted to terminate them under the new language?”

The judge further asks whether there are other companies within the ride-sharing domain that classify their drivers as employees, “If so, are there any factors specific to Lyft’s business model that preclude it from classifying drivers as employees, or from providing drivers with some of the protections employees receive under California law?”

Last March, the judge denied summary judgement for the Lyft class action lawsuit and determined that a jury should decide whether Lyft drivers are employees or not.

The plaintiffs are required to answer the list of Lyft settlement questions in a supplemental brief that is due Feb. 25, 2016; while Lyft has until Mar. 3, 2016 to submit their report.

Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates on the Lyft class action settlement. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Matthew D. Carlson of Carlson Legal Services and Shannon Liss-Riordan of Lichten & Liss-Riordan PC.

The Lyft Driver Class Action Lawsuit Settlement is Cotter, et al. v. Lyft Inc. et al., Case No. 3:13-cv-04065, in the U.S. District Court for the Northern District of California.

UPDATE: On May 11, 2016, a group of Lyft drivers have asked a California federal judge to preliminarily approve a $27 million class action settlement over allegations Lyft misclassified its California drivers as independent contractors.

UPDATE 2: The California Lyft driver class action settlement is now open! Click here to file a claim.

UPDATE 3: On Nov. 16, 2016, Lyft drivers urged a California federal judge to grant final approval to a $27 million settlement stemming from a class action lawsuit brought by drivers who want to be treated as employees and not independent contractors.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now