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Lyft settlement with drivers over pay rejected as too small

Lyft's proposal to pay its California drivers $53 each to drop claims that they should be treated like employees was rejected by a judge as glaringly inadequate.

By Joel Rosenblatt | Updated on April 07, 2016

(Bloomberg) – Lyft Inc.’s proposal to pay its California drivers an average of $53 each to drop claims that they should be treated like employees was rejected by a judge as “glaringly” inadequate.

A federal judge said in a ruling Thursday that a proposed payout of $12.25 million for the 100,000 drivers in the case represents only about a 10th of the amount of mileage reimbursement they were seeking under their own attorney’s methodology for valuing claims. Adding in other uncompensated claims, the drivers may have been “shortchanged” even more, U.S. District Judge Vince Chhabria in San Francisco wrote.

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