Lyft to Pay $272.5 Million to Settle California Driver Misclassification Claims

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, 87% will go directly to drivers. More than 1,600 drivers who filed wage claims through 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. Related: Ride-Hailing Policies in New Jersey Must Provide PIP Benefits for Injured Pedestrians 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. Related: Uber, Lyft Win Court Block on NYC Law Requiring Notice Before Firing Drivers The settlement covers alleged violations from April 6, 2016, through Dec. 15, 2020. It does not require Lyft to reclassify drivers going forward or provide relief for later work under the classification framework established by Proposition 22. Topics California Claims Personal Auto Sharing Economy Ridesharing Was this article valuable? Thank you! Please tell us what we can do to improve this article. Thank you! % of people found this article valuable. Please tell us what you liked about it. Here are more articles you may enjoy.