Overview
- New Jersey’s labor department said an audit of 2014–2017 records found nearly $11 million in unpaid contributions plus $8.5 million in interest and penalties.
- Lyft withdrew its petition for an administrative hearing and paid the balance before an August proceeding at the state Office of Administrative Law.
- The assessment stemmed from drivers seeking unemployment and disability benefits, which the state says they were denied due to misclassification.
- Lyft maintains drivers are properly classified as independent contractors under New Jersey law but said it will not pursue further challenges in this case.
- The action adds to a pattern of state enforcement, including Uber’s $100 million payment in New Jersey in 2022 and large settlements in New York and Massachusetts.