A Lyft driver has filed a lawsuit against the ride-sharing giant, alleging severe discrepancies in reported earnings and actual payments. Lawrence M. Willhalm lodged the complaint on July 8, 2024, at the Superior Court of California in San Francisco, accusing Lyft, Inc., of various violations including negligence and unfair business practices.
According to the complaint, Willhalm began driving for Lyft in 2022 and was classified as an independent contractor. He claims that Lyft reported significantly higher earnings to tax authorities than what he actually received. For instance, in 2022, Lyft reported $43,681.07 in earnings for Willhalm while he only received $23,663.28. Similarly, in 2023, Lyft reported $52,826.83 whereas Willhalm received just $29,980.43. This discrepancy amounts to a total of $44,640.11 over two years.
Willhalm alleges that these discrepancies forced him to liquidate stock to cover his tax liabilities based on the inflated income figures provided by Lyft. He also states that this misreporting pushed him into a higher tax bracket, resulting in additional taxes paid to both federal and state agencies.
Before filing the lawsuit, Willhalm attempted to resolve these issues through Lyft’s driver assistance program but found no resolution after lengthy hold times and unproductive conversations.
The plaintiff accuses Lyft of negligence for failing to report accurate earnings and payments for its drivers. He further claims that Lyft engaged in unfair business practices by making misleading statements about driver earnings on their website and app. For example, Lyft promised drivers would receive "70% or more each week" after external fees were subtracted from rider payments—a guarantee Willhalm says was not met.
Additionally, Willhalm accuses Lyft of intentional misrepresentation by advertising false testimonials such as “Fair, upfront, and honest” from other drivers. He argues that these statements were made knowingly with the intent to deceive potential drivers into working for the company under false pretenses.
In his lawsuit, Willhalm seeks general damages of no less than $100,000 along with special damages amounting to at least $60,000. He is also asking for punitive damages totaling no less than $100,000 due to what he describes as oppression and fraud by Lyft.
The case is being handled without legal representation as Willhalm is representing himself (Pro Per). The case number is CGC-24-656118 and it will be presided over by judges at the Superior Court of California in San Francisco.