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Lyft drivers lawsuit may end without addressing worker reclassification

A lawsuit filed by drivers against Lyft may not address the key and contentious issue of whether the drivers should be reclassified as employees with all the attendant benefits.

The app-based ride hailing company is offering a $12.25 million settlement fund, including attorney fees and other costs, besides non-monetary relief to the about 100,000 drivers, but will not be required to reclassify its drivers as employees.

Their classification as employees would raise costs for Lyft in terms of employee benefits as well as set a precedent for similar court disputes against on-demand companies, including one involving Uber Technologies that is playing out in a court in California.

But drivers affiliated with the Teamsters Union are objecting to the settlement in the 2013 proposed class-action lawsuit, as they say it would continue to “misclassify” Lyft employees in California as independent contractors.

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