Overview
- State Attorney General Rob Bonta and city attorneys announced the $272.5 million tentative deal on Thursday to resolve claims that Lyft misclassified drivers who worked for the company from April 5, 2016, through December 15, 2020.
- At least $237,075,000 of the settlement is reserved for drivers and individual payments will be calculated by hours and miles driven with distribution handled by an independent settlement administrator that will contact eligible drivers.
- The agreement, which settles alleged violations of California Labor Code sections 2775 et seq. and the state’s Unfair Competition Law, is subject to San Francisco Superior Court approval and does not require Lyft to reclassify drivers after Dec. 15, 2020.
- Lyft says it does not admit wrongdoing and framed the payment as closing a pre‑Prop 22 chapter; the company may spread payments over up to four years and the Labor Commissioner’s Office said it will forgo its portion so more money goes to drivers.
- Officials call this the largest worker misclassification and wage‑and‑hour settlement in California history and the deal leaves related litigation against Uber unresolved, a development that could shape future enforcement and settlements in the gig economy.