Lyft reaches $272.5 million settlement with California AG Bonta in wage theft case
A $272.5 million settlement was reached between Lyft and California Attorney General Rob Bonta in a wage theft case against the rideshare company.
Bonta and city attorneys for San Francisco, San Diego and Los Angeles alleged that Lyft misclassified drivers as independent contractors rather than employees between 2016 and 2020, which the California DOJ said would be in violation of California Labor Code sections 2775 and California’s Unfair Competition Law.
The settlement, which still awaits court approval, would require Lyft to pay the $272.5 million in restitution and penalties through a fund managed by a third-party administrator. At least $237,075,000 will be reserved for drivers who worked for Lyft, the California DOJ said.
Bonta called the settlement the “largest misclassification settlement in California’s history.”
“Rideshare companies like Lyft have enjoyed massive growth and profits on the backs of drivers over the past decade, many of whom are from immigrant communities and communities of color, ” Bonta said in a statement. “Lyft’s success would not be possible without the drivers Lyft sought to unfairly short-change. Hard-working employees deserve full compensation for their labor.”
Compensation and eligibility for drivers will be based on the number of hours and miles driven between April 5, 2016, and Dec. 15, 2020.
According to the California DOJ, once the settlement is approved. the third-party settlement administrator will contact eligible workers. A website, email address and call center will be set up to inform and answer questions from drivers who believe they are eligible for restitution.
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