Overview
- State and city officials announced the $272.5 million deal Thursday to resolve claims that Lyft misclassified drivers as contractors from April 2016 through December 2020.
- At least $237,075,000 is reserved for eligible drivers and will be distributed by a third‑party administrator based on hours and miles driven.
- The settlement must be approved by a San Francisco judge before funds are paid and the administrator will set up a website, email and call center to contact drivers.
- Lyft denied wrongdoing and said the deal closes a chapter that predates Proposition 22, which now allows app‑based drivers to remain independent contractors.
- The agreement settles the state’s case against Lyft but leaves related litigation against Uber unresolved and could affect how future gig‑worker claims are handled.