California AG's Office: $272.5 Million Lyft Settlement Sets State Record in Driver Misclassification Case
The following is reposted information.
Source: California Attorney General's Office press release
[SAN FRANCISCO] California Attorney General Rob Bonta today — alongside the City Attorneys of San Francisco, San Diego, and Los Angeles — announced a $272.5 million settlement with rideshare company Lyft, resolving allegations that between 2016 and 2020, Lyft committed wage theft by misclassifying drivers as independent contractors rather than employees, in violation of California Labor Code sections 2775 et seq. and California's Unfair Competition Law. The settlement is subject to court approval.
"We are proud to announce this landmark win for workers, the largest misclassification settlement in California's history," said Attorney General Bonta.
Background: In 2020, the Attorney General and the City Attorneys sued on behalf of the People of the State of California, alleging Lyft's misclassification deprived drivers of minimum wage, overtime, and expense reimbursement. The case followed the "ABC test" adopted by the California Supreme Court in Dynamex (2018) and codified under AB5.
Under the settlement, Lyft must pay $272,500,000 in restitution and penalties, with at least $237,075,000 reserved for drivers who worked for Lyft between April 5, 2016 and December 15, 2020, based on hours and miles driven. A third-party administrator will manage the fund and contact eligible workers.
Published by GSM · USA (original Chinese edition)
Photo: Steven Pavlov 摄，CC BY-SA 3.0（Wikimedia Commons）
