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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.

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Overview

  • 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.