While Lyft will not have to reclassify the drivers as employees, a separate case also filed by Liss-Riordan seeks to do just that for Uber drivers.
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She continued, “Although this difference does not speak to whether either company has rightly or wrongly chosen to classify its drivers as independent contractors instead of employees, it cements our belief that far more Uber drivers than Lyft drivers are anxious for us to continue pursuing these misclassification claims against Uber”.
The lawyer who won a promise from Lyft Inc.to change the way it treats drivers said she now has a stronger resolve to force rival Uber Technologies Inc.to overhaul its business model.
“We believe this is a fair settlement and adequate resolution of the claims we brought, given the risks we faced in the litigation against Lyft”, Liss-Riordan wrote. Classifying workers as contractors is a boon for the companies but hard on workers because, as Gillian White reported in June, employee status entitles a worker to a broad range of legal protections.
Those risks included provisions in Lyft driver contracts requiring arbitration and effectively banning class-action cases. Lyft will also amend its terms of service, which should be signed by the drivers in order for them to be consistent in their contractual position. It will list specific reasons that allow it to “deactivate” drivers – previously it could terminate their service for any cause.
Drivers will also be able to take up pay-related issues before a neutral arbitrator at Lyft’s expense if they feel they haven’t been paid properly.
U.S. District Judge Edward Chen in San Francisco said on December 22 he won’t issue a final judgment affecting most drivers in the case following a trial if the challenge to his order hasn’t been resolved on appeal.
The drivers weren’t able to achieve “global changes” at Lyft, but those changes are still possible at Uber, explained Shannon Liss-Riordan, the attorney representing both Lyft drivers and Uber drivers in their respective cases.
“We have not been hearing so many concerns from Lyft drivers, which leads us to believe that Lyft is treating its drivers with more respect than Uber is treating its drivers”, said Liss-Riordan.
A Lyft spokesman could not be reached for comment. A similar suit brought by Uber drivers is set to proceed to trial this summer, after winning class certification a year ago.
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She is contending that Uber controls important parts of drivers’ work, including fares and who can and can’t work. Those who drove more than 30 hours per week for more than half of their time with Lyft will be eligible to receive larger payments. Lyft’s drivers will continue to operate as contractors, though they now have significant workplace protections. The company also agreed to pay for certain fees associated with arbitration between drivers and the company. Finally, drivers who consistently get high ratings and who passengers pinpoint as their favorites will be rewarded with bonuses.
