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Lyft Agrees to Pay $12.25 Million to Settle Drivers’ Claims

  • Agreement would require reason to deactivate drivers
  • California drivers would still be treated as contractors
Updated on

Ride-share company Lyft Inc. has agreed to pay $12.25 million and change how it treats its California drivers to settle claims of unfair treatment, while rival Uber Technologies Inc. heads toward trial to fight similar demands by its drivers.

The proposed settlement would allow Lyft to deactivate drivers only for specified reasons rather than terminating them at will, according to a court filing Tuesday. Lawyers for the drivers asked a federal judge in San Francisco to approve the accord.