Lyft Accused of Failing to Pay Drivers Due Wages

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Lyft Inc. is facing another proposed class action that claims it misclassified its drivers as independent contractors, withheld a percentage of their due wages, and falsely advertised how much they would earn each week. According to the suit, Lyft calculates its own commissions based on a percentage of each passenger’s fare plus sales tax and Black Car Fund charges rather than just the fare, illegally requiring drivers to pay for a portion of the extra charges instead of properly seeking payment from their customers. Additionally, the complaint argues that the defendant maintains a level of control over the drivers’ business as it would in an employer-employee relationship, yet denies them the benefits of being classified as employees, such as overtime pay and reimbursement for the costs of driving their vehicles.

Even further, the plaintiff says the defendant discloses a higher price to customers than it does to Lyft drivers and keeps the difference for itself, robbing the drivers of their rightful wages.

Finally, the complaint claims Lyft does not follow through on its advertised guarantee that drivers will earn at least $1,500 per week and unlawfully coerces them into abandoning their previous employment only to earn less than they expected.

This suit follows on the heels of a settlement finalized in March of this year requiring Lyft to pay $27 million to drivers who worked for the company in California between May 25, 2012 and July 1, 2016.