Lyft will pay $272.5 million to settle California driver wage theft claims

Lyft agreed to pay California $272.5m to settle wage theft claims, with $237m going to drivers. The settlement covers alleged violations from 2016 to 2020. Lyft maintains drivers were properly classified, according to the company. The case was first brought in 2020 and merged with other suits.

California settled a $273M case with Lyft over worker misclassification, raising questions about Uber's potential liability. The case centers on whether gig workers should be classified as employees or independent contractors, impacting labor laws and company costs. According to the state, the settlement resolves claims that Lyft misclassified drivers, avoiding further legal battles. The outcome may influence similar cases against other gig economy companies.

Lyft will pay $272.5 million to settle claims from California and three cities that it misclassified drivers as contractors, denying them wage protections. The settlement, pending court approval, covers alleged violations from 2016 to 2020. Lyft denies wrongdoing but is glad to resolve the case. This is the largest wage theft settlement in California history, according to the state Labor Commissioner's Office.

Lyft agreed to a $272.5M settlement for alleged driver misclassification in California, covering claims from 2016 to 2020. The deal, pending court approval, will distribute at least $237.075M to eligible drivers. Lyft denies wrongdoing but aims to avoid litigation costs, according to the company.

Lyft agreed to pay $272.5M to settle a lawsuit alleging misclassification of California drivers as independent contractors, denying them wage protections. 87% of the settlement will go to drivers. The case covers 2016-2020, and the settlement does not require Lyft to reclassify drivers going forward. Lyft maintains drivers were properly classified and plans to focus on driver earnings and affordable rides.

Lyft agreed to a $272.5M settlement for California driver misclassification claims from 2016-2020. Payments may span four years with capped interest. Lyft recorded a $210M accrual in Q4 2025, excluding this from Adjusted EBITDA metrics. The settlement does not admit liability.