Lyft Agrees to $272.5 Million California Settlement

Lyft has agreed to pay $272.5 million to resolve California claims that it misclassified drivers as independent contractors and denied them wages and protections available to employees. The proposed settlement covers allegations brought by the state, Los Angeles, San Diego and San Francisco, as well as claims by drivers. It still requires approval from a judge. The agreement addresses alleged conduct from April 2016 through December 2020, before Proposition 22 took effect. That voter-approved measure changed how California labor law applies to app-based transportation and delivery workers, allowing companies to classify drivers as independent contractors under specified conditions. The settlement does not establish that Lyft violated the law, and the court has not determined liability. Under the proposed terms, compensation for eligible drivers would generally be calculated according to the miles they drove for Lyft during the covered period. The number of drivers who will qualify and the amount each will receive have not been established. California Labor Commissioner Lilia García-Brower said her office would forgo its $5.