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Lyft Faces Another Class Action

By William Vogeler, Esq. | Last updated on

Lyft is catching up with Uber in riders and class actions.

Not that anyone is counting, but Lyft just picked up a new class action over driver pay. It accuses the company of cutting into drivers' fares.

It sounds a lot like a recent complaint against Uber. But in the lawsuit count, this time Lyft is content to be number two.

Fare Dispute

According to the plaintiffs' attorney, Lyft tricks drivers in setting fares. They may think they are getting 80 percent, but they are getting closer to 60 percent.

Larry Peluso filed suit on behalf of all Lyft drivers who joined the company in the United States no later than April 8. After that date, Peluso says, the company changed its approach to avoid more liability.

Engadget, reporting on the case, said Lyft declined to comment. But the ezine noted it is timely because the California Supreme Court recently gave gig economy workers -- like Lyft and Uber drivers -- a way to claim more benefits.

In that case, the state's Supreme Court expanded the definition of employee to include workers who had been treated as independent contractors. Experts say the ruling will increase the number of workers eligible for minimum wage, rest breaks and other benefits under state wage standards.

Uber, Too

Uber is the runaway leader in the ride-hailing market, but with great success comes great liability. The company has paid hundreds of millions to settle cases, including another $10 million in a discrimination case in March.

Earlier this year, drivers were certified in a class-action against Uber over fares. Plaintiffs say they were supposed to get 80 percent of the fare, but it's more like 70 percent.

That case was filed a year ago. The Lyft fare case is just getting started.

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