One company is done battling a gig economy -related lawsuit, at least in California. Lyft has agreed to grant its drivers more workplace protection and to pay $12.5 million to settle a proposed class action lawsuit. The California drivers who filed the lawsuit against the company wanted to be reclassified as employees in order to receive minimum wage and benefits, as well as to get Lyft to pay for their gas and vehicle maintenance. While they’ve unfortunately failed to get their status changed — they’re still considered contractors — drivers in the state will get part of the settlement fund based on the hours they’ve put into working for the company. Lyft also can’t drop drivers whenever it wants. The company can only terminate someone based on a number of predetermined reasons, such as low passenger ratings. Even then, the driver will be given the chance to air their side of the story. Finally, drivers who consistently get high ratings and who passengers pinpoint as their favorites will be rewarded with bonuses. Jackdaw Research chief analyst Jan Dawson told Reuters that while Lyft is losing millions, it still got off “fairly lightly.” Reclassifying drivers as employees, he said, would have cost the company much, much more. Uber wasn’t able to prevent a similar case from becoming a full-fledged class action lawsuit, but this proves it’s possible to settle with the plaintiffs without changing how the company operates. [Image credit: Justin Sullivan/Getty Images] Source: Reuters , Bloomberg
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Lyft will pay $12.25 million to settle drivers’ lawsuit in CA
An anonymous reader writes: Driverless cars could mean a huge downsizing of the auto insurance industry, as the frequency of accidents declines and liability shifts from the driver to the vehicle’s software or automaker. This is compounded by the rise of ride-sharing services. Once summoning a vehicle to take you somewhere isn’t limited by the number of people available to drive them (and are correspondingly cheaper), car ownership is likely to decline. Many major automakers and tech companies are throwing billions of research dollars into making this happen, and insurance companies are trying to figure out how to survive. For example, a recent patent application shows State Farm is betting on collecting massive amounts of data about you. While they’ll no doubt use it to set your insurance rates, they also plan to “send you advice, alerts, coupons or discounts on insurance or other goods and services.” Traveler’s Insurance is thinking along somewhat similar lines. They want to create “a device that offers specific suggestions for managing errands and other travel. Customers would be able to see a map of ‘risk zone’ data for places they want to go, such as stores, restaurants and roads. They could then plan the day ‘with an eye toward how risky such endeavors may be, ‘ according to the patent application.” Read more of this story at Slashdot. 