Lyft agrees to pay California $272.5m in largest-ever wage theft settlement
Summary
Lyft agreed to pay California $272.5 million to settle claims that it misclassified drivers as independent contractors instead of employees, which led to drivers missing out on wages and benefits. Over $237 million of this money will go to thousands of affected Lyft drivers once the court approves the deal.Key Facts
- Lyft allegedly mislabeled drivers from April 2016 to December 2020, denying them employee benefits and protections.
- The settlement is the largest wage theft case in California’s history.
- California’s attorney general says rideshare companies grew large profits by unfairly short-changing drivers.
- More than $237 million will be paid directly to Lyft drivers involved in the lawsuit after court approval.
- Lyft claims drivers have always been properly classified and wants to end the case.
- Cities including Los Angeles, San Francisco, and San Diego joined California’s original 2020 lawsuit.
- Lyft and Uber backed Proposition 22, a 2020 state ballot measure to exempt rideshare drivers from employee laws.
- A similar lawsuit against Uber is still ongoing, while a related $328 million settlement was made in New York in 2023.
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