SETTLEMENT AGREEMENT
UNDER THE AMERICANS WITH DISABILITIES ACT
BETWEEN
THE UNITED STATES OF AMERICA
AND
LYFT, INC.

BACKGROUND

  1. The parties to this Settlement Agreement (“Agreement”) are the United States of America and Lyft, Inc. (“Lyft”).
  2. This matter was initiated by an initial complaint received by the United States Department of Justice, USAO No. 2018V00194, DJ No. 202-12C-636. The United States Attorney’s Office for the Central District of California (“USAO”) conducted an investigation under the authority granted by the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12188(b).
  3. The United States and Lyft have reached an agreement that is in the parties’ best interests, and that the United States believes is in the public interest, to resolve this matter on mutually agreeable terms. The parties have therefore voluntarily entered into this Settlement Agreement, as set forth below.

THE PARTIES

  1. Lyft is incorporated in California, with its principal place of business at 185 Berry Street, Suite 5000, San Francisco, California 94107.
  2. The United States Department of Justice is responsible for enforcing Title III of the ADA, 42 U.S.C. §§ 12181-89, and the relevant regulations implementing Title III, 28 C.F.R. Part 36 and 49 C.F.R. Part 37.

LEGAL STANDARDS

  1. Title III provides that “[n]o individual shall be discriminated against on the basis of disability in the full and equal enjoyment of specified public transportation services provided by a private entity that is primarily engaged in the business of transporting people and whose operations affect commerce.” 42 U.S.C. § 12184(a).
  2. Title III of the ADA prohibits discrimination on the basis of a disability in the full and equal enjoyment of specified public transportation services provided by an entity that is primarily engaged in the business of transporting people and whose operations affect commerce. 42 U.S.C. § 12184(a); 49 C.F.R. § 37.29(c).
  3. ADA regulations provide that when private entities provide taxi services, those entities “shall not discriminate against individuals with disabilities by actions including, but not limited to, refusing to provide service to individuals with disabilities who can use taxi vehicles, refusing to assist with the stowing of mobility devices, and charging higher fares or fees for carrying individuals with disabilities and their equipment than are charged to other persons.” 49 C.F.R. 37.29(c); see 49 C.F.R. pt. 27, app. D § 37.29 (“For purposes of this section, other transportation services that involve calling for a car and a driver to take one places . . . are regarded as taxi services.”).
  4. ADA regulations provide that private entities that operate a transportation system “shall ensure that personnel are trained to proficiency, as appropriate to their duties, so that they operate vehicles and equipment safely and properly assist and treat individuals with disabilities who use the service in a respectful and courteous way, with appropriate attention to the difference among individuals with disabilities.” 49 C.F.R. § 37.173.
  5. An entity subject to 49 C.F.R. Part 37 shall designate at least one person to coordinate its efforts to comply with Part 37. 49 C.F.R. § 37.17(a). Such entities shall also “adopt procedures that incorporate appropriate due process standards and provide for the prompt and equitable resolution of complaints” that allege any action prohibited by 49 C.F.R. Parts 27, 28, 37, and 39. 49 C.F.R. § 37.17(b). The process for filing a complaint must be sufficiently advertised to the public, the complaint procedures must be accessible to and usable by individuals with disabilities, and an entity must promptly communicate its response to the complaints allegations and document its response. 49 C.F.R. § 37.17(b).
  6. The United States asserts that Lyft provides specified public transportation within the meaning of 42 U.S.C. § 12181(10) and 49 C.F.R. § 37.3.
  7. The United States also asserts that Lyft is an operator of a demand-responsive transportation service within the meaning of 42 U.S.C. § 12181(3) and 49 C.F.R. § 37.3.
  8. Lyft denies that it is subject to the ADA, denies that it provides specified public transportation as that term is defined in the ADA, denies that it is an operator of a demand-responsive transportation service within the meaning of the ADA, and denies that it provides taxi services. Lyft further denies that it has discriminated against individuals who have filed complaints with the Department of Justice or other individuals who allege that they were subject to discrimination, and denies that it has violated any federal, state, or other laws. Lyft asserts that Drivers on the Lyft platform are independent contractors. By entering into this Agreement, Lyft does not admit any wrongdoing, liability, or fault.

FACTUAL ALLEGATIONS

  1. Prior to receiving notice of the USAO’s investigation of the initial complaint, Lyft had a wheelchair policy, which was published on its website. That policy explains, “[P]assengers who use wheelchairs that can safely and securely fit in the car’s trunk or backseat without obstructing the driver’s view should be reasonably accommodated by drivers on the Lyft Platform. Drivers should make every reasonable effort to transport the passenger and their wheelchair.” Lyft’s website also had information about how to help passengers with disabilities and how to load foldable or collapsible wheelchairs. However, the United States alleges that Lyft did not require Drivers to review its wheelchair policy.
  2.  Prior to receiving notice of the USAO’s investigation of the initial complaint, the United States alleges that Lyft did not have in place a process to educate Drivers regarding the safe operation of vehicles and equipment and proper assistance and treatment of individuals with disabilities who use the Lyft platform, with appropriate attention to the difference among individuals with disabilities. See 49 C.F.R. § 37.173.
  3. Prior to receiving notice of the USAO’s investigation of the initial complaint, the United States alleges Lyft did not have a person designated to coordinate its efforts to comply with 49 C.F.R. Part 37, nor did Lyft have a complaint system that complied with 49 C.F.R. § 37.17(b). Lyft has since designated a person.
  4. Complainant J.H. alleged that on multiple occasions Lyft drivers repeatedly denied him a ride because he had a collapsible wheelchair. Complainant J.H., who uses a wheelchair, has a physical impairment that substantially limits one or more major life activities. Accordingly, he has a disability within the meaning of 42 U.S.C. § 12102 and 28 C.F.R. § 36.105. Specifically, from 2015 to 2017, Complainant J.H. alleges that he filed at least twelve complaints with Lyft regarding his treatment from specific drivers in the Los Angeles area on account of his disability. Eight of his complaints alleged that drivers either refused or could not transport him because he had a wheelchair. Four of his complaints alleged that drivers treated him rudely because he had a wheelchair.
  5. Complainant M.H. alleged that on one occasion in June 2018 a Lyft driver denied her a ride because she had a walker. Complainant M.H., who uses a walker, has a physical impairment that substantially limits one or more major life activities. Accordingly, she has a disability within the meaning of 42 U.S.C. § 12102 and 28 C.F.R. § 36.105.
  6. Complainant D.L. alleged that on one occasion in September 2018 a Lyft driver denied her a ride because she had a collapsible wheelchair. Complainant D.L., who uses a wheelchair, has a physical impairment that substantially limits one or more major life activities. Accordingly, she has a disability within the meaning of 42 U.S.C. § 12102 and 28 C.F.R. § 36.105.
  7. Complainant R.N., a service member who lost both legs in combat, alleged that on one occasion in November 2018 a Lyft driver denied him a ride because he had a collapsible wheelchair. Complainant D.L., who uses a wheelchair, has a physical impairment that substantially limits one or more major life activities. Accordingly, he has a disability within the meaning of 42 U.S.C. § 12102 and 28 C.F.R. § 36.105.

DEFINITIONS

  1. The term “Critical Response Line” refers to the team of Lyft employees primarily responsible for responding to, among other things, inquiries from Riders and Drivers that require immediate resolution, including but not limited to car accidents; alleged inappropriate behavior, such as rudeness or drug use; and claims of discrimination.
  2. The terms “Driver” or “Drivers” refer to any person in the United States who has consented to the Lyft Terms of Service and is in good standing to provide transportation to Riders matched through the Lyft Platform.
  3. The term “Lyft Platform” refers to the technology platform that connects users (Drivers and Riders) of the Lyft Platform to one another for the provision of transportation by way of a mobile-phone application. For this Agreement only, the term Lyft Platform may refer to any and all versions of the Lyft smartphone application, the Lyft website, and/or any future dynamic electronic interface that Lyft might adopt during the duration of this Agreement.
  4. The terms “Rider” or “Riders” refer to all individuals with disabilities who seek transportation services by being matched to Drivers through the Lyft Platform and includes companions with disabilities of individuals who seek such transportation services through the Lyft Platform.
  5. The term “Trust & Safety” refers to the team of Lyft employees primarily responsible for responding to, among other things, trust and safety issues and complaints, and reports of purported harassment or discrimination related to transportation matched through the Lyft Platform.

ACTIONS TO BE TAKEN BY LYFT

  1. Lyft will not exclude persons with disabilities from participation in, or deny them benefits of, transportation services, to the extent required by applicable laws. See 42 U.S.C. § 12184; see also 28 C.F.R. Part 36; 49 C.F.R. Part 37.
  2. Within 30 days of the effective date of this Agreement, Lyft shall modify its wheelchair policy described in Paragraph 14 to specify that Drivers are required to assist with the stowing of foldable or collapsible mobility devices used by individuals with disabilities, such as wheelchairs, scooters, and walkers. This policy shall also state that Drivers shall not discriminate against an individual with a disability in providing transportation services arranged on the Lyft Platform. See 49 C.F.R. § 37.5(f). Lyft shall post this revised policy on its website.
  3. Within 90 days of the effective date of this Agreement, Lyft will implement the following program to educate Drivers on the Lyft Platform regarding its wheelchair policy:
    1. In its welcome e-mail sent to all new Drivers, Lyft will include information regarding its wheelchair policy, with a link to additional information regarding the policy. The content on the wheelchair policy shall be consistent in tone and in length when compared with the content of other material in the welcome e-mail.
    2. Once each quarter, Lyft shall send a communication to all current Drivers on its Platform regarding the wheelchair policy. Such communications may be in the form of emails, text messages, or pop-ups in the Lyft App, in Lyft’s discretion, and may include links to the wheelchair policy, to any video regarding the policy, or other form of reminders that are consistent in tone and format with other forms of communications that Lyft issues to Drivers regarding its policies.
    3. Within 180 days of the Effective Date of this Agreement, Lyft shall create a new educational video (or in its discretion, a series of shorter videos) (the “Educational Video”) regarding its wheelchair policy, including best practices for accommodating Riders with foldable or collapsible wheelchairs. Lyft shall publicize the Educational Video to its Drivers and use an appropriate process to incentivize Drivers to watch the Educational Video.
  4. Lyft has already designated an employee responsible for coordinating its efforts to comply with 49 C.F.R. § 37.17(a), and Lyft shall continue to ensure that it has such a designated employee. Within 30 days of the effective date of this Agreement, that individual will adopt and implement a complaint procedure consistent with 49 C.F.R. § 37.17(b).
  5. Within 60 days of adopting the complaint procedure described in Paragraph 29, and every year thereafter for the duration of this Agreement, Lyft will train its Critical Response Line and Trust & Safety employees, as well as any other employees tasked with processing, investigating, or responding to those complaints, on Lyft’s wheelchair policy and how to process and respond to those complaints in a manner consistent with Lyft’s policies and 49 C.F.R. § 37.17(b). Lyft will also provide the same training to newly hired Critical Response Line and Trust & Safety employees, as well as any other employees tasked with processing, investigating, or responding to those complaints, within 30 days of hire.
  6. If, after investigating a Rider’s complaint, Lyft determines or obtains reliable evidence that a Driver knowingly violated its wheelchair policy or threatened, harassed, provided inferior service, or otherwise discriminated against a Rider because of a foldable or collapsible wheelchair, Lyft may permanently end its business relationship with the Driver, or otherwise respond in a manner consistent with its enforcement of Drivers’ violations of other provisions in the Lyft Terms of Service. Additionally, if Lyft determines or obtains reliable evidence that a Driver knowingly violated its wheelchair policy or threatened, harassed, provided inferior service, or otherwise discriminated against a Rider because of a foldable or collapsible wheelchair, Lyft shall (1) refund any trip cancellation charges or other charges imposed in connection with the circumstances that form the basis of the complaint, and (2) issue to the Rider an account credit of no less than $10 for use on the Lyft Platform.
  7. If Lyft receives two or more complaints that plausibly allege a specific Driver violated its wheelchair policy or threatened, harassed, provided inferior service, or otherwise discriminated against a Rider because of a foldable or collapsible wheelchair, Lyft may permanently end its business relationship with the Driver, or otherwise respond in a manner consistent with its enforcement of other provisions in the Lyft Terms of Service. If a Rider makes a plausible complaint of discrimination under Lyft’s wheelchair policy, Lyft shall (1) refund any trip cancellation charges or other charges imposed in connection with the circumstances that form the basis of the complaint, and (2) issue to the Rider an account credit of no less than $10 for use on the Lyft Platform.
  8. Every six months during the duration of this Agreement, Lyft will provide the United States written reports describing the activities Lyft has taken to comply with Paragraphs 27–32 of this Agreement. These reports will also describe each complaint filed pursuant to the complaint procedure described in Paragraph 29, including a unique numerical identifier related to the complainant, the nature of the allegation, how the complaint was resolved, the date Lyft received the complaint, and the date Lyft communicated the resolution to the complainant. Upon request, Lyft will provide the United States all documentation supporting or related to Lyft’s written reports or additional information regarding specific complaints.
  9. During the duration of this Agreement, Lyft will notify the United States if any individual or entity brings any lawsuit alleging that Lyft discriminated against or denied its services to any individual with a disability based on the alleged failure by a Driver (or Drivers) to accommodate foldable or collapsible wheelchairs or other similar mobility devices. Such notification must be provided in writing within 30 days from when Lyft received oral or written notice of the lawsuit and will include, at a minimum, the nature of the allegation and the name of the individual making the allegation.

MONETARY RELIEF FOR COMPLAINANTS

  1. Within 30 days of the effective date of this Agreement, Lyft shall pay a total of $30,000 to Complainant J.H. to compensate him as authorized by 42 U.S.C. 12188(b)(2)(B) and 28 C.F.R. § 36.504(a)(2). Such payment shall be made by check payable to the order of the Complainant J.H. (in his legal name) and delivered to counsel for the United States.
  2. Within 30 days of the effective date of this Agreement, Lyft shall pay a total of $4,000 to Complainant M.H. to compensate her as authorized by 42 U.S.C. 12188(b)(2)(B) and 28 C.F.R. § 36.504(a)(2). Such payment shall be made by check payable to the order of the Complainant M.H. (in her legal name) and delivered to counsel for the United States.
  3. Within 30 days of the effective date of this Agreement, Lyft shall pay a total of $4,000 to Complainant D.L. to compensate her as authorized by 42 U.S.C. 12188(b)(2)(B) and 28 C.F.R. § 36.504(a)(2). Such payment shall be made by check payable to the order of the Complainant D.L. (in her legal name) and delivered to counsel for the United States.
  4. Within 30 days of the effective date of this Agreement, Lyft shall pay a total of $4,000 to Complainant R.N. to compensate him as authorized by 42 U.S.C. 12188(b)(2)(B) and 28 C.F.R. § 36.504(a)(2). Such payment shall be made by check payable to the order of the Complainant R.N. (in his legal name) and delivered to counsel for the United States.
  5. Within 15 days of the effective date of this Agreement, the United States Attorney’s Office will deliver to Lyft a release signed by Complainants J.H., M.H., D.L., and R.N. The releases are attached hereto as Exhibit A.

CIVIL PENALTY

  1. Within 30 days of the effective date of this Agreement, Lyft shall pay a total of $40,000 to the United States as a civil penalty, pursuant to 42 U.S.C. § 12188(b)(2)(C) and 28 C.F.R. § 36.504(a)(3), as amended, by delivering a check to counsel for the United States made payable to the United States Treasury.

IMPLEMENTATION

  1. In consideration for entering this Agreement, the United States will refrain from undertaking further enforcement action relating to this investigation or from filing a civil action alleging discrimination based on the allegations set forth above. However, the United States may review Lyft’s compliance with this Agreement or Title III of the ADA at any time. If the United States believes that any portion of this Agreement or Title III of the ADA has been violated, it may institute a civil action in the appropriate U.S. District Court to enforce Title III of the ADA, following written notice to Lyft of the possible violation and a period of 21 days in which Lyft has the opportunity to cure the alleged violation.
  2. Failure by the United States to enforce any provisions in this Agreement is not a waiver of its right to enforce other provisions of this Agreement.
  3. If any term of this Agreement is determined by any court to be unenforceable, the other terms of this Agreement shall nonetheless remain in full force and effect, provided, however, that if the severance of any such provision materially alters the rights or obligations of the parties, the United States and Lyft shall engage in good faith negotiations in order to adopt mutually agreeable amendments to this Agreement as may be necessary to restore the parties as closely as possible to the initially agreed upon relative rights and obligations.
  4. The provisions of the Agreement shall be binding upon the principals, successors, beneficiaries, assigns, heirs, executors, administrators, parent entities, and subsidiaries of the respective Parties.
  5. The signatory for Lyft represents that he or she is authorized to bind Lyft to this Agreement.
  6. This Agreement is the entire agreement between the United States and Lyft on the matters raised herein and no other statement, promise or agreement, either written or oral, made by any party or agents of any party, is enforceable. This Agreement can only be modified by mutual written agreement of the parties.
  7. This Agreement is a public document. The parties agree and consent to the United States’ disclosure of this Agreement and information concerning this Agreement to the public subject to any applicable privacy laws.
  8. This Agreement is not intended to remedy any other potential violations of the ADA or any other law that is not specifically addressed in this Agreement. Nothing in this Agreement changes Lyft’s obligation to otherwise comply with the requirements of the ADA.
  9. All documents and communications required to be sent to the United States under the terms of this Agreement shall be sent to the following individual by overnight courier or, where practicable, by e-mail:

    Acrivi Coromelas
    Assistant U.S. Attorney
    Civil Rights Section, Civil Division
    United States Attorney’s Office
    300 Los Angeles Street, Rm. 7516
    Los Angeles, CA  90012

EFFECTIVE DATE/TERMINATION DATE

  1. The effective date of this Agreement is the date of the last signature below.
  2. The duration of this Agreement will be three years from the effective date
AGREED AND CONSENTED TO:

 

FOR THE UNITED STATES

NICOLA T. HANNA
United States Attorney
Central District of California

KAREN P. RUCKERT
Assistant United States Attorney
Chief, Civil Rights Section, Civil Division


By: /s/
ACRIVI COROMELAS
Assistant United States Attorney
Civil Rights Section, Civil Division

Dated: 6/22/20

FOR LYFT, INC.

By: /s/
Lindsay Llewellyn
VP, Associate General Counsel
Lyft, Inc.

Dated: 6/17/20