Lyft settles driver misclassification suit for $272.5M

Lyft has reached a $272.5 million settlement to resolve claims that it violated California labor law by classifying its drivers as independent contractors instead of employees from 2016 to 2020. The lawsuit, brought by California labor officials, alleged drivers were denied minimum wage, overtime, paid sick leave, and other benefits. The proposed agreement still requires court approval and affects thousands of drivers for the company during the specified period.

• Settlement totals $272.5 million, pending court approval
• Covers drivers classified as contractors from 2016-2020
• Plaintiffs alleged denial of employee wages and benefits
• Labor Commissioner will allocate its share to driver wage claims
• Prop 22 passed in 2020 classifies current Lyft drivers as contractors