Lyft settles California driver misclassification case for $272.5 million
The deal sets aside at least $237,075,000 for worker payments if a court approves it.
California officials have reached a $272.5 million settlement with Lyft over claims that it treated drivers as contractors instead of employees, a dispute that matters for gig-work classification and back pay. The announcement came from Attorney General Rob Bonta alongside three city attorneys, and it applies only to Lyft, not Uber. The case began with a May 2020 lawsuit filed by then-Attorney General Xavier Becerra against both ride-hailing companies after California’s AB5 changed the legal standard for contractor status. If a court approves the deal, at least $237,075,000 is set aside to repay workers for minimum wage and benefits tied to hours and miles driven from April 5, 2016 through December 15, 2020.
Why it matters
The settlement narrows the dispute to Lyft and creates a path for drivers to receive repayment tied to hours and miles driven over a defined period. For workers, the key change is that the case can now move from a broad legal fight over contractor status to a specific payout calculation based on the court-approved terms.
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Sources
- Ars Technica
- Engadget