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Lyft to pay California $272.5m to settle wage theft claims over driver status
The agreement covers alleged misclassification violations from April 2016 through December 2020, and more than $237m would be distributed to drivers if approved by a court.
Lyft agreed to pay California $272.5 million to settle wage theft claims tied to how the company labeled its drivers, the Guardian Business reports.
California alleged that Lyft misclassified drivers as independent contractors instead of employees, which it said resulted in stolen wages.
California Attorney General Rob Bonta called the settlement a landmark win for workers and said it is the largest wage theft settlement of its kind in the state’s history.
The settlement, subject to court approval, covers alleged violations from April 2016 through December 2020, and would distribute more than $237 million to drivers after approval.