Ride sharing company Lyft has agreed to pay $12.25 million in a settlement over a “worker classification” lawsuit in California, but will be able to continue to classify its workers as independent contractors, instead of employees.
The 2013 class action lawsuit had accused Lyft of misclassifying drivers as independent contractors instead of employees and not reimbursing business expenses, including gas and mileage costs.
Despite the settlement payment, “the outcome is a good one for Lyft because it can keep an important part of its business model,” notes TechCrunch. “It’s also a positive sign for rival Uber, which is currently facing its own worker classification lawsuit.”
Read the full story here.