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Lyft Pays $272.5M to Settle California Driver Classification Lawsuit
Tech
Oct 2, 2026TechCrunch

Lyft Pays $272.5M to Settle California Driver Classification Lawsuit

Lyft has agreed to pay $272.5 million to settle a California lawsuit over the misclassification of its drivers as independent contractors instead of employees. The settlement covers the period from April 2016 to December 2020, predating the passage of Proposition 22 which solidified drivers' contractor status. This resolves a significant legal chapter for Lyft, though similar cases against other gig companies persist.

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