Business
Lyft agrees to $272.5 million California driver settlement
The court-pending agreement would direct 87% of the money to drivers and resolve claims joined by Los Angeles and San Diego over work performed from 2016 through 2020.
Lyft agreed to a $272.5 million settlement resolving allegations by California and the city attorneys of Los Angeles, San Diego and San Francisco that the company misclassified drivers as independent contractors between 2016 and 2020. Reuters reported the agreement October 1, and the settlement remains subject to court approval.
What it means locally
The California Labor Commissioner says 87% of the settlement will go directly to drivers, with additional funds for more than 1,600 drivers who filed administrative wage claims. Eligible drivers will be contacted by a third-party administrator; public enrollment details have not been announced. The agreement covers work through December 15, 2020, and does not require future reclassification under Proposition 22. Lyft says drivers were always properly classified, and its SEC filing says the agreement is not an admission of liability. The accompanying photograph shows a Lyft vehicle in Santa Monica in May 2014 and is archival; it does not depict a claimant or the current settlement.
Full report and further details: Read original report →