Lyft will pay $272.5 million to settle allegations it misclassified California drivers as independent contractors.
Of the settlement with the California Labor Commissioner’s Office (LCO), 87% will go directly to drivers. More than 1,600 drivers who filed wage claims through the LCO’s administrative process will receive additional funds as a result of the LCO redirecting its share of the penalties ($5.45 million) payable to the state. Additionally, wage claimants will receive a multiplier that doubles the mileage used to calculate their payment, according to the LCO.
The LCO sued Lyft in 2020, alleging drivers were denied minimum wages, overtime, expense reimbursements, and other protections. The case was coordinated with state and local enforcement actions and private lawsuits.
The settlement covers alleged violations from April 6, 2016, through December 15, 2020. It does not require Lyft to reclassify drivers going forward, nor does it provide relief for later work conducted under the classification framework established by Proposition 22.
