“Lyft to Pay $272.5 Million to Settle California Driver Classification Lawsuit” — what this page in the network covers. Lyft has agreed to pay $272.5 million to settle a lawsuit brought by the state of California over the misclassification of drivers as independent contractors. The settlement, announced this week, resolves claims that the ride-hailing company violated state labor laws by denying drivers benefits such as minimum wage, overtime, and sick leave. California sued Lyft and Uber in 2020 under Assembly Bill 5 (AB5), which requires companies to treat workers as employees unless they meet strict criteria for independent contractor status.
The case threatened to upend the gig economy model by forcing companies to provide costly benefits and protections. Lyft’s settlement, which does not include an admission of wrongdoing, will be distributed to drivers who worked for the company during the relevant period. This listing links straight to the original page, where the content is available in full.