Lyft settles landmark driver misclassification lawsuit for $272.5M
California’s attorney general and three city attorneys announced a $272.5 million settlement with Lyft after allegations that the company “committed wage theft by misclassifying drivers as independent contractors rather than employees” between 2016 and 2020, according to a Thursday [statement][1].
The case dates back to May 2020, when then-Attorney General Xavier Becerra, who is now the Democratic candidate for governor, [sued both Uber and Lyft][2]. That lawsuit said the ridehailing companies evaded state law when they declared that their drivers were not employees.
Thursday’s settlement affects only Lyft, while the case against Uber continues.
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[1]: https://oag.ca.gov/news/press-releases/attorney-general-bonta-city-attorneys-san-francisco-san-diego-and-los-angeles
[2]: https://www.nbcnews.com/tech/tech-news/uber-lyft-face-landmark-lawsuit-over-gig-worker-classification-n1200526
[3]: https://arstechnica.com/tech-policy/2026/10/lyft-settles-landmark-driver-misclassification-lawsuit-for-272-5m/
[4]: https://arstechnica.com/tech-policy/2026/10/lyft-settles-landmark-driver-misclassification-lawsuit-for-272-5m/#comments
https://arstechnica.com/tech-policy/2026/10/lyft-settles-landmark-driver-misclassification-lawsuit-for-272-5m/