Lyft Agrees to $272.5 Million Settlement Over Wage Theft Claims
Lyft will pay $272.5 million to resolve a six‑year wage‑theft lawsuit filed by California and three major cities.
The settlement resolves allegations that Lyft misclassified drivers as independent contractors from 2016 to 2020, denying them minimum‑wage guarantees and mandated benefits.
Approximately $237 million of the total will flow into a third‑party fund that distributes restitution based on drivers’ hours and miles logged during the period.
California Attorney General Rob Bonta called the agreement “the largest misclassification settlement in state history,” emphasizing that rideshare firms have profited at drivers’ expense, especially immigrant and minority workers.
Los Angeles City Attorney Hydee Feldstein Soto added that companies that misclassify workers “deny critical protections and shift the burden onto taxpayers,” noting the settlement sends a clear legal message.
The court must still approve the deal before payments begin, and eligible drivers will be notified through the administrator to submit claims.
Lyft maintains it has not engaged in wrongdoing, but the settlement ends the litigation.
Between 2016 and 2020, Lyft reported $9.5 billion in revenue, while most drivers earned $11‑$18 per hour after expenses, according to ShiftTracker data.
Lyft’s stock rose 0.56% to $16.22 following the announcement, as shown in the latest market data.
