Lyft Agrees to $272.5M Settlement Over California Wage Theft Claims

Key Facts

1Lyft agreed to pay $272.5 million to settle a lawsuit brought by California officials over alleged wage theft and driver misclassification.

Lyft agreed to pay $272.5 million to settle a lawsuit brought by California officials over alleged wage theft and driver misclassification. Fox Business reported that the settlement addresses claims that the ride-hailing company misclassified drivers as independent contractors rather than employees, leading to alleged wage violations between 2016 and 2020.

The agreement marks the largest misclassification settlement in California's history, with approximately $237 million to be placed in a third-party fund for driver compensation. While Lyft has agreed to the payment to resolve the litigation that began in 2020, the company maintains that it did not engage in any wrongdoing.