SAN FRANCISCO — Plaintiffs lawyers who have spent nearly three years battling app-based ride service Lyft Inc. have an awkward task ahead of them as they try to secure a peace deal: persuading a federal judge to approve a $12.25 million class action settlement that in some ways runs counter to the initial objective of their employment suit.
In Cotter v. Lyft, 13-4065, lawyers representing Lyft drivers argued that their clients were employees, entitled to reimbursement for gas and other costs that they incurred on the job. But under the terms of the proposed settlement, the drivers will instead more firmly hold independent-contractor status. And on average, they will receive very little money.
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