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This is the second in a two-part blog on Cotter v. Lyft, a California case involving misclassification of drivers. Read about the “whys” of the case in our first post, Employee or Independent Contractor? That Is the Question. In the settlement agreement, Lyft agreed to pay more than $12 million ($12,250,000 to be exact, for all monetary benefits and payments to…
As part of our previous blog series titled Uber and Lyft Drivers Might Be Employees, Not Independent Contractors, Under California Law, we wrote about Cotter v. Lyft, a California case involving claims of misclassified drivers.[1] At the heart of this case was the question of whether Lyft drivers were independent contractors or employees under California law. Why should this matter…
Cotter v. Lyft. In Cotter v. Lyft, a district court case involving similar facts as in Berwick v. Uber, the court acknowledged at the outset that Lyft drivers didn’t seem much like employees or independent contractors.[1] On one hand, the court noted, Lyft drivers, unlike typical employees, work as little or as much as they want and can schedule their…
Berwick v. Uber. In 2014, Uber and a middleman Rasier-CA LLC (collectively referred to as “Uber”) employed Berwick as a driver in San Francisco, California, under the terms of a written agreement.[1] The agreement provided, in relevant part, that Berwick was entitled to accept, reject, and select among service requests and that Berwick was to perform accepted requests in accordance…
Employee or Independent Contractor? Business owners hire people all the time. Depending on their status as an employee or independent contractor, however, the law treats them differently, affecting all facets of the relationship, including wages, taxes, etc. Employers who misclassify workers as independent contracts can end up with substantial tax bills and face penalties for failing to pay employment taxes…