Lyft Drivers Try to Intervene in $27M Labor Settlement

In a recent California wage and hour class action lawsuit, a pair of Lyft drivers have tried to become involved in a proposed $27 million settlement from ride sharing company.

Lyft had allegedly misclassified California drivers as independent drivers, when the Lyft drivers should have been minimum wage workers.

In filing a Lyft class action lawsuit, the Lyft drivers are trying to stop the settlement because the arrangement may threaten their claims in a separate lawsuit against Lyft.

Drivers Alex Z. and Rayshon C. had filed a motion to become involved in the Cotter v. Lyft class action lawsuit, where the company recently agreed to pay a $27 million settlement which nearly doubled an earlier offer rejected by the court.

Overview of Lyft Wage and Hour Allegations

While Alex and Rashon are not looking to stop the deal, they are trying to protect their individual claims in a separate lawsuit filed earlier this month.

Their own Lyft class action lawsuit alleged Lyft had started taking portions of the “prime time” premium fares passengers paid when the demand for rides was high, but there were not enough Lyft drivers to accommodate.

Similar to the Cotter suit, Alex and Rashon allege Lyft had misclassified them as independent drivers rather than employees.

They further claim that California drivers are qualified to be employees and are entitled to the state’s gratuity protections under California labor laws and the Private Attorney General Act.

The portion of the “prime time” premium was the surcharge Lyft promised to riders would go to drivers instead went to the company.

Essentially, the company had allegedly been committing tip theft against Lyft drivers. According to Alex and Rashon’s motion, the revised settlement of Cotter v. Lyft allows for consideration of the three legal claims relevant to the class including reimbursement, overtime, and gratuity compensation.

However the deal extended to the prime time premium claims for free, spurring Alex and Rashon to try and jump in on the Cotter settlement to protect their own case.

“Plaintiffs-intervenors’ narrow criticism of the revised settlement — that the release is overboard — may be remedied quickly, with minimal interference in the settlement proceedings, by an easily applied alteration to the release,” the plaintiffs’ lawyers said.

Lawyers from Lyft are going to oppose Alex and Rashon’s attempt to join the settlement, because it came too late – after the Cotter parties had agreed to the revised settlement.

In addition, the lawyers state that they are not sure why their claims would qualify for gratuity claims.

The revised Lyft settlement came on May 11, 2016, when Lyft drivers proposed a new settlement to U.S. District Judge Vince Charbria who had rejected the company’s initial $12 million deal in April.

Along with the cash payouts, the settlement also only allows the company to fire drivers for only a specific list of reasons.

A preliminary approval hearing was held on the revised settlement for the Cotter v. Lyft class action lawsuit on June 2, 2016.

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

The intervenors’ separate case is Alex Z. et al. v. Lyft Inc. et al., Case No. 4:16-cv-02558, in the U.S. District Court of Northern California.

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

UPDATE 2: 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