Lyft reportedly reaches $272.5 million California driver-classification settlement

An agreement over driver classification from 2016 to 2020

According to the report, California Attorney General Rob Bonta and attorneys for three cities announced a $272.5 million settlement with Lyft. The matter concerned allegations that Lyft committed wage theft by classifying drivers as independent contractors rather than employees during 2016–2020. Officials described it as California’s largest misclassification settlement. Lyft said it believes drivers were properly classified and that it was glad to put the case behind it.

California’s case alleged that Lyft misclassified drivers as independent contractors rather than employees from 2016 to 2020. The supplied report does not provide a comparable prior settlement amount for Lyft.

The reported $272.5 million agreement resolves the allegations against Lyft only; the case against Uber is continuing.

The reported settlement addresses a long-running dispute over how ride-hail drivers were classified under California law. It applies to Lyft alone, while the related case against Uber remains unresolved.