California Negotiates $1.3 Billion Settlement with Uber and Lyft Over Driver Wage Theft Claims

Talks aim to resolve allegations of driver misclassification and unpaid wages, with over 250,000 drivers potentially eligible for compensation.

California has entered settlement negotiations with Uber and Lyft over wage theft claims involving drivers misclassified as independent contractors between 2016 and 2020.
The claims total over $1.3 billion, with drivers alleging unpaid wages, overtime, mileage reimbursement, and other damages.
Protests by drivers in Los Angeles, San Francisco, and San Diego are demanding full compensation and improved workplace protections during the talks.
Mediation sessions are scheduled for late March and early April, with Uber and Lyft defending their practices under Proposition 22, which classifies drivers as independent contractors.
Uber and Lyft highlight their investments in driver benefits under Prop. 22, while drivers argue their pay has declined, often falling below minimum wage after expenses.