Lyft agrees to pay California $272.5m in largest-ever wage theft settlement
More than $237m will be distributed to drivers over firm labeling them independent contractors and not employees
TL;DR
- Lyft will pay California $272.5 million to settle wage theft claims.
- The settlement covers the period from April 2016 to December 2020.
- Over $237 million will be distributed to thousands of Lyft drivers.
- The state's attorney general called it a 'landmark win for workers' and the largest settlement for wage theft claims in California history.
- Drivers classified as independent contractors do not receive benefits like social security, health insurance, paid sick days, or overtime.
- A similar lawsuit against Uber is ongoing.
- Lyft and Uber jointly paid $328 million to settle similar claims in New York in 2023.