Ride-share company Lyft has agreed to pay $12.25 million and change how it treats its California drivers to settle claims of unfair treatment, meanwhile Uber will go to 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, however, it will not change the status of the company’s drivers from independent contractors to employees. The class had been arguing that they are entitled to employee status in order to receive benefits like sick leave and workers’ comp. It is unclear whether or not this settlement will end Lyft’s legal woes, as much precedent depends upon the Uber ruling, expected later this year.
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