Lyft’s $27 Million Question Mark

Lyft Inc. received final court approval March 16 for a proposed settlement agreement in which it will pay $27 million to some 95,000 drivers in California who say the company erroneously classified them as independent contractors (Cotter v. Lyft, Inc., N.D. Cal., No. 3:13-cv-04065, 3/16/17).

The deal, approved by Judge Vince Chhabria of the U.S. District Court for the Northern District of California, means the question of whether drivers should be classified as employees or independent contractors remains unresolved by a federal court. If the drivers are employees, as they contend, that would entitle them to various forms ...