Lyft Settles California Driver Misclassification Case for $272.5 Million
California's attorney general and three city attorneys announced a $272.5 million settlement with Lyft over allegations that the company committed wage theft by classifying drivers as independent contractors rather than employees between 2016 and 2020, according to a statement cited by Ars Technica. The settlement affects only Lyft; the case against Uber continues. The allegations are the state's, and the resolution is a settlement rather than a court ruling. That is the shape most misclassification fights take: the question of who counts as an employee gets answered in money rather than doctrine, and the same question stays live on the other side of this case.
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The suit dates to May 2020, when then-Attorney General Xavier Becerra — now the Democratic candidate for governor — sued Uber and Lyft, arguing they evaded state law by declaring their drivers were not employees.
Six years from filing to a settlement that covers one of the two companies, with the other half still running. Slow is the norm in these fights, and it's the drivers who wait.