Posted by & filed under Accounting Information Systems, Accounting Principles, All Articles, Auditing, Cost Accounting, Ethical Dilemma, Financial Accounting, Intermediate Accounting, Managerial Accounting.

Drivers who worked for the “taxi” service known as Lyft, (in California) during the past four years, would have been entitled to an estimated $126 million in expense reimbursements had they been employees rather than independent contractors.

1. How much would Lyft drivers have recouped under a standard rate for mileage reimbursement set by the U.S. government?
2. Based on the information in the article, do you think it was reasonable to count the drivers as independent contractors? Why or why not?
3. What was the settlement and what percent of the potential value of the claim was it?

Levin, S. and Heather Somerville. (2016). Exclusive: Lyft drivers, if employees, owed millions more – court documents., March 20 (Retrievable online at

Proxy fight