Employment Law Alliance CEO and Hirschfeld Kraemer LLP Co-managing Partner Stephen J. Hirschfeld was quoted in both the San Francisco Chronicle and the legal trade publication The Recorder, with respect to a recently announced proposed settlement between the ride sharing service Lyft and its drivers. The agreement, which is still subject to approval by the court, maintains the classification of drivers as independent contractors, but provides workers a greater degree of protection from being terminated by the company and secures a commitment from Lyft to pay fees and costs for future arbitration claims brought.
In the San Francisco Chronicle, Hirschfeld is quoted in the article titled, "Lyft drivers to remain contractors in lawsuit settlement," noting that the proposed settlement appears beneficial for both sides:
Lyft gets to preserve the independent contractor status that is an important element in its business model,” he said. “And the drivers gained some due process surrounding any decision to terminate their relationship with Lyft.
In The Recorder, Hirschfeld is quoted in the article titled, "Lyft Drivers Get $12 Million, More Job Security in Settlement," cautioning against drawing a direct parallel between this dispute and a similar pending lawsuit between Uber and a portion of its drivers. In both matters, plaintiffs are represented by attorney Shannon Liss-Riordan.
[This settlement] says to me that the plaintiffs' lawyer in this case was willing to resolve this short of destroying the business model by pursuing due process rights and some job security for the drivers. She (Liss-Riordan) got that, and Lyft got some finality.