Lyft settles landmark driver misclassification lawsuit for $272.5M
Lyft has agreed to a $272.5 million settlement with California authorities to resolve allegations of misclassifying drivers as independent contractors rather than employees. The settlement covers the period between 2016 and 2020, though critics argue the payout is insufficient compared to the benefits owed.
Why it matters
This settlement marks a significant legal milestone in the ongoing debate over the gig economy and the labor rights of platform-based workers.
employees? Lyft settles landmark driver misclassification lawsuit for $272.5M Critics say workers are still owed far more.
8 Credit: Getty Images Credit: Getty Images Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav California’s attorney general and three city attorneys announced a $272.5 million settlement with Lyft after allegations that the company “committed wage theft by misclassifying drivers as independent contractors rather than employees” between 2016 and 2020, according to a Thursday statement .
The case dates back to May 2020, when then-Attorney General Xavier Becerra, who is now the Democratic candidate for governor, sued both Uber and Lyft . That lawsuit said the ridehailing companies evaded state law when they declared that their drivers were not employees.
Thursday’s settlement affects only Lyft, while the case against Uber continues.
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