Lawsuit Alleges Lyft Misclassified Drivers as Independent Contractors

Are you a driver for the rideshare company Lyft, Inc.(Lyft)? If so, you may have fallen victim to worker misclassification. In recent years, Lyft has come under fire for reportedly misclassifying their drivers as independent contractors while playing a heavy hand in how drivers perform their roles. Drivers for Lyft have claimed the company has the power to force drivers to comply with specific policies and rules designed to control their performance, set and change their pay rates, monitor their performance, assign particular rides to drivers, and more. 

If you are a Lyft driver in Massachusetts, New York, New Jersey, Connecticut, Washington, the District of Columbia, Illinois, or Texas and suspect you have been misclassified as an independent contractor, we may be able to help you. For more information, connect with a Morgan & Morgan worker misclassification attorney today to receive a free case evaluation. 
 

What is Worker Misclassification?

In order to stay in compliance with the Fair Labor Standards Act (FLSA) and the U.S. Department of Labor, a company or business must classify its workers as employees or independent contractors depending on their roles and the company’s involvement as the workers perform their duties. However, many companies have opted to abuse employee classification by misclassifying their workers as independent contractors in order to save money. 

Independent Contractors vs Company Employees: Company Roles

When it comes to your working arrangements, understanding the difference between an independent contractor and an employee is crucial to know if your employer has misclassified you. An independent contractor is considered a "self-employed" individual who provides a service or services to clients on a contract basis. An Independent contractor has more control over how they complete their work, setting their own work hours, choosing their projects, and what equipment is used in order to complete the tasks.

On the other hand, an employee works directly for the company under an employment contract. Typically, an employee has less freedom in determining how and when they perform their assigned tasks, and they must adhere to the specific instructions provided by the employer.

Independent Contractors vs Company Employees: Benefits

There are several differences in the benefits available to those workers who are classified as employees compared to those who are classified as self-employed workers or independent contractors. As a company employee who is given a consistent work schedule, guaranteed a regular wage, and is entitled to certain benefits including, but not limited to, Social Security or Medicare benefits, paid time off, and retirement plans.

When classified as an independent contractor, you'll typically work in short-term, contract-based jobs. Independent contractors are responsible for paying their own taxes, including federal income taxes and self-employment taxes, and are not entitled to company-provided benefits. Most contractors must also purchase their own healthcare out of pocket and do not receive any paid time off or retirement plans.

When companies choose to misclassify their workers, they avoid paying minimum wage and enrolling workers in a health benefits plan. Misclassification also allows companies to avoid staying in compliance with Equal Employment Opportunity Commission laws, which prevent employment discrimination. If you are a driver for Lyft and believe you have been misclassified as an independent contractor, contact a Morgan & Morgan worker misclassification attorney today. 

Have I Been Misclassified as an Independent Contractor by Lyft?

Working as an independent contractor means the role a company plays in your work does not equal that of an employee. If you are a driver for Lyft and suspect you have been classified as an independent contractor working under the guise of an employee, then you may have been misclassified. For more information, contact a Morgan & Morgan misclassification attorney today to receive a free case evaluation.

How Does Worker Misclassification Affect My Role as a Lyft Driver?

As a misclassified worker, you are being denied a consistent and regular wage, certain employee benefits including, but not limited to, Social Security or Medicare benefits, paid time off, retirement plans, and more. If you are a driver for Lyft in Massachusetts, New York, New Jersey, Connecticut, Washington, the District of Columbia, Illinois, or Texas and believe you have been misclassified as an independent contractor, we may be able to help you recover compensation for the benefits you've been denied. For more information, contact a Morgan & Morgan attorney today to receive a free case evaluation. 

What Legal Claims Have Been Filed Against Lyft?

For years, the rideshare company Lyft has been under fire for worker misclassification. Some of the most recently noted lawsuits filed against them include a 2017 class action lawsuit brought by drivers who sought to be classified as employees, where the company settled for $ 27 million. Then in 2023, the company came under fire in a wage theft lawsuit which involved both Lyft and Uber. The case resulted in a combined settlement of $328 million to be paid to their current and former drivers. 

How Can a Morgan & Morgan Attorney Help?

If you are a current or former driver for Lyft and believe you were misclassified as an independent contractor, do not hesitate to contact a Morgan & Morgan worker misclassification attorney today. Working with an attorney can help you understand what you may be entitled to recover after the rideshare company Lyft has misclassified you as an independent contractor.

Our attorneys are currently pursuing claims on behalf of Lyft drivers based in Massachusetts, New York, New Jersey, Connecticut, Washington, the District of Columbia, Illinois, or Texas who believe Lyft misclassified them as independent contractors. For more information, contact a Morgan & Morgan worker misclassification attorney today to receive a free case evaluation.

Can I Afford To Hire a Morgan & Morgan Misclassification Attorney?

The answer will always be yes. 

At Morgan & Morgan, we understand how intimidating it can be to head up against some of the most prominent players in the nation. We also know how much worse it can feel when you're presented with legal fees you may not be able to afford. This is why our attorneys work on what is known as a "contingency fee." Because we believe everyone should have access to quality legal representation, no matter their financial situation, working on the contingency allows us to provide you with the best attorneys in the business at no cost to you. 

When you hire one of our attorneys, with the contingency in place, they'll go to bat for you with zero down payment or hourly fees. Your attorney will work with you to ensure you have the best case moving forward in recovering the compensation you and your loved ones deserve. Should your attorney fare successful in your case, only then will they collect a portion from your share of the settlement or court award. 

Sounds too good to be true? We promise it's not. If you have questions about how the contingency works or how a Morgan & Morgan worker misclassification attorney can help you, complete our free, no-obligation case evaluation form today. With over 35 years of experience, our law firm has helped millions recover the compensation they deserve, and we want to help you, too.