Business · Companies · 10 hrs ago
Lyft agrees to $272.5 million California wage settlement
California state authorities and officials from San Francisco, San Diego and Los Angeles reached a settlement with Lyft over how it classified drivers from 2016 to 2020.
The state alleged that treating drivers as independent contractors denied them wages and benefits they were owed.
Lyft agreed to pay $272.5 million, which would be California’s largest wage-and-hour settlement if a judge approves it.
Lyft says it classified drivers properly and describes the case as involving a time before Proposition 22.
Passed by California voters in 2020 after gig companies backed it, Proposition 22 let companies continue treating drivers as independent contractors.
The settlement addresses allegations about past practices but does not change the rules that apply to drivers now.
The deal still needs a judge’s approval.
California authorities reached a $272.5 million settlement with Lyft over allegations that it misclassified drivers as independent contractors from 2016 to 2020.
The proposed settlement would be the largest wage-and-hour settlement in California history if approved by a judge.
Lyft says it has always classified drivers appropriately and that the settlement concerns a period before Proposition 22.
The 2020 voter-approved measure allowed Lyft and other gig companies to continue classifying drivers as independent contractors.
A drivers’ group president called the settlement a victory but said it should have come sooner and been larger.
- Who
- Lyft, California state authorities and attorneys for San Francisco, San Diego and Los Angeles.
- What
- They reached a proposed $272.5 million settlement over allegations that Lyft misclassified drivers and denied them wages and benefits.
- When
- In early October; the article was published on October 12, 2026.
- Where
- California.
- Why
- Authorities alleged Lyft misclassified drivers as independent contractors from 2016 to 2020, denying them wages and benefits.
California state and city authorities
Lyft
Worker classification
California state and city authorities
Authorities alleged Lyft misclassified drivers as independent contractors and denied them wages and benefits.
Lyft
Lyft says it has always classified its drivers appropriately under the law.
Settlement
California state and city authorities
Authorities reached a proposed $272.5 million settlement over the allegations.
Lyft
Lyft says the settlement closes a chapter from before Proposition 22 and puts the case behind it.
California’s Supreme Court established a stricter test for determining whether workers could be treated as independent contractors.
California and several city governments sued Lyft and Uber over their worker-classification practices.
Voters approved Proposition 22, which allowed gig companies to continue classifying drivers as independent contractors.
California state and city authorities reached a proposed settlement with Lyft.
- Proposed settlement
- $272.5 million
- Period covered by allegations
- 2016 to 2020
- Cities represented
- San Francisco, San Diego and Los Angeles
- Driver claims against Lyft
- More than $434 million, according to Nicole Moore
- Proposition 22 vote
- November 2020
What people are saying
It’s a freaking absolute victory for drivers
This is a little bit of justice to get back what they stole from us.
If approved, this settlement closes a chapter from a very different time, before Prop 22
Lyft believes drivers have always been properly classified under the law, and we’re glad to put this case behind us.
Sources
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