Lyft agrees to $12M driver lawsuit settlement

Ride-hailing service Lyft has agreed to pay $12.3 million and offer new termination protections to settle a proposed class-action lawsuit.

However, the company's drivers still will not be classified as employees.

In the suit, drivers claimed Lyft misclassified them as independent contractors instead of employees. They also said they were entitled to benefits like expense reimbursement and overtime.

While they'll remain independent contractors, under the settlement, Lyft drivers will gain some new benefits. Previously, the company could terminate drivers without notice for any reason. Now, the company must give specified reasons for firing drivers.

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