Lyft will pay $272.5 million to settle California driver wage theft claims
LYFT•Lyft agreed to pay $272.5 million to settle claims by California and three cities that it misclassified drivers as independent contractors. The settlement, subject to court approval, covers alleged violations from April 2016 through December 2020.
1. Settlement terms
Lyft agreed to pay $272.5 million to settle claims brought by California, Los Angeles, San Francisco and San Diego that it misclassified drivers as independent contractors. The cases were merged with lawsuits brought on behalf of thousands of Lyft drivers, and the settlement is subject to court approval.
2. Lyft disputes claims
Lyft said drivers have always been properly classified under the law and that it was glad to put the case behind it. The state Labor Commissioner's Office called it the largest settlement involving wage theft claims in California history.
3. Broader claims
Lyft, Uber and other app-based services have faced worker misclassification claims for more than a decade. Lyft and Uber agreed in 2023 to pay $328 million to settle similar claims by New York's attorney general.
