Lyft Drivers Seek Final Approval of $27 Million Class Action Settlement

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Lyft drivers are urging 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.

In their motion requesting for final approval, the plaintiffs told U.S. District Judge Vince Chhabria Wednesday that nothing has changed since the court preliminarily approved the settlement with the ride-hailing company in July that would require reconsideration of approval.

According to court documents, the positive reaction of the Class weights in favor of final approval. The motion indicates that the Court received objections from just eight of the 202,030 Class Members and that only 65 Class Members opted out of the settlement.

“It is established that the absence of a large number of objections to a proposed class action settlement raises a strong presumption that the terms of a proposed class settlement action are favorable to the class members,” the motion reads.

The plaintiffs further state that the amount offered in the settlement continues to weigh in favor of final approval.

Judge Chhabria rejected an initial settlement offer in April of $12.5 million, saying that it “shortchanged” drivers.

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.

In July, Judge Chhabria found the revised settlement agreement “fixes the monetary flaws the court previously identified and enhances the non-monetary benefits at least to some degree.”

However, a handful of California Lyft drivers and a Teamsters-backed drivers’ alliance objected to the $27 million settlement, telling the court the settlement and concessions are “insufficient.”

The objectors also claim the settlement agreement fails to address the key issue of whether “drivers for ride-hailing companies such as Lyft and Uber should remain independent contractors or be treated as employees, eligible for healthcare benefits and paid time off, among other provisions,” the Los Angeles Times reports

The class action lawsuit original filed in 2012 by drivers in California claims the ride-hailing company misclassified them as independent contractors rather than employees.

Specifically, the case revolved around whether the drivers were entitled to reimbursement for expenses including gasoline and vehicle maintenance, which employees would be paid for but which independent contractors would not.

Should the proposed settlement receive final approval, the $27 million will be paid out to an estimated 63,447 Lyft drivers who submitted timely claims. Based on this current number of submitted claims as of Nov. 16, Lyft drivers may receive payments ranging from $5,500 to $11,000. Drivers who qualify as “full-time” drivers may receive higher payment amounts.

Additionally, drivers would have rights to receive tips and to challenge being fired.

Class Members have until Dec. 1, 2016 to file a Claim Form for the Lyft Driver class action settlement.

Lyft drivers had until Oct. 29, 2016 to opt-out of the settlement or submit any objections. The final settlement hearing is scheduled for Dec. 1, 2016.

The Class is represented by Shannon Liss-Riordan and Matthew D. Carlson of Lichten & Liss-Riordan PC.

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

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