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Lyft to pay $272.5M to settle California worker classification lawsuit

Lyft has agreed to pay $272.5 million to settle a lawsuit alleging worker misclassification. The settlement, announced by California Attorney General Rob Bonta, aims to compensate drivers for minimum wage and benefits owed from April 2016 to December 2020. This resolution comes after California's Assembly Bill 5 initially classified gig workers as employees, a move challenged by companies like Lyft and Uber through Proposition 22, which reclassified them as contractors with specific benefits. While this settlement resolves the state's claims against Lyft, Uber's portion of the lawsuit remains pending. AI

RANK_REASON Settlement of a major lawsuit concerning worker classification for a large gig economy company. [lever_c_demoted from significant: ic=1 ai=0.1]

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Lyft to pay $272.5M to settle California worker classification lawsuit

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Settlement of a major lawsuit concerning worker classification for a large gig economy company. [lever_c_demoted from significant: ic=1 ai=0.1]
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COVERAGE [1]

  1. Engadget TIER_1 English(EN) · [email protected] (Ian Carlos Campbell) ·

    Lyft agrees to pay $272.5 million to settle worker classification lawsuit

    Uber and Lyft were sued by the state of California in 2020 for misclassifying employees as contractors.