Lyft Offers to Settle New York Driver Classification Disputes

Lyft Inc. has offered to pay New York ride-share drivers about $100 to $600 each to settle a lawsuit alleging the company misclassified them as contractors instead of employees, but the deal would require the drivers to keep quiet about it.

Lawyers for a class of some 8,000 drivers are already advising them not to accept the proposed settlement, according to documents obtained by Bloomberg Law that detail the offer. Lyft’s offer is “too low,” would allow the company to boot drivers off the platform, and would force drivers to sign confidentiality and nondisparagement agreements, the lawyers say.

“We believe ...