N環球 
Lyft to pay $272.5 million to settle California driver misclassification case
Lyft agreed to pay $272.5 million to settle claims it misclassified California drivers as independent contractors; more than $237 million will go directly to drivers in the largest wage-theft settlement in California history, pending court approval.
Why it matters
This is the largest wage-theft settlement in California history and a landmark in the decade-long fight over whether gig-economy drivers are employees or independent contractors. Lyft's settlement closes its chapter; Uber still faces parallel claims.
Full report
Lyft has agreed to pay $272.5 million to settle claims by the state of California and its three largest cities — San Francisco, Los Angeles and San Diego — that the ride-hailing company misclassified drivers as independent contractors rather than employees between April 2016 and December 2020, Reuters reported.
California Attorney General Rob Bonta announced the settlement on October 1, calling it a landmark win for workers. At least $237 million will be distributed directly to thousands of Lyft drivers as restitution for unpaid wages and benefits; the remainder covers civil penalties and costs.
State officials alleged the misclassification denied drivers minimum wage, overtime, rest breaks, paid sick leave and business-expense reimbursement. California sued in 2021, joined by the three cities, and the cases were merged with driver lawsuits. The deal is subject to court approval; Lyft admits no wrongdoing and says drivers "have always been properly classified."
The settlement covers liability from the AB5 era before Proposition 22 took effect in late 2020 and does not require Lyft to reclassify drivers going forward. Uber, originally sued alongside Lyft, still faces the same claims.
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