Lyft drivers in Utah now eligible to receive benefits
Dec 13, 2024, 2:16 PM
FILE - The Lyft logo is displayed on a car on March 7, 2019 in San Francisco, California. On-demand transportation company Lyft has filed paperwork for its initial public offering that is expected to value the company at up to $25 billion. (Photo by Justin Sullivan/Getty Images)
(Photo by Justin Sullivan/Getty Images)
SALT LAKE CITY — Utah Lyft drivers are one step closer to receiving benefits. Lyft is piloting a new program that will offer financial benefits to drivers in Utah.
The program comes after the Utah Legislature passed a bill in the 2023 session allowing companies to give contract workers benefits without them having to be full-time employees. Utah will be the first state to experiment with it with the help of portable benefits provider Stride.
Stride Vice President Bryan Giaimo said benefits in the U.S. are tied to the notion of having a full-time job. He said about 36% of Utahns earn income from gig work like ride shares or food delivery.
Companies tend to view gig workers as independent contractors, not employees. Therefore, they don’t have to offer them benefits.
“That’s just not really how the world works today, right? That system leaves out millions of Americans in our opinion in a gig economy and beyond, people who really want the flexibility of independent work but can’t get the benefits that come along with full-time work.”
How does the program work?
Drivers with the “elite” status can opt in to the new program.
Lyft will contribute 7% of the drivers’ quarterly earnings to a savings account. Drivers can then use that money to cover health, dental, and vision insurance costs.
Giaimo said at the end of the day, their goal is to improve the lives of drivers.
