Lyft agreed to pay California $272.5 million to settle claims of wage theft. The settlement funds will see over $237 million distributed directly to the drivers involved.
The agreement addresses alleged violations that occurred between April 2016 and December 2020. Rob Bonta, the District Attorney, called the agreement a “landmark win for workers”.
Furthermore, Bonta stated that rideshare companies, such as Lyft, benefited from substantial growth and profits using drivers over the last decade. The lawsuit against Lyft initially commenced in 2020.
The cities of Los Angeles, San Francisco, and San Diego joined the legal action. Lilia García-Brower noted that the settlement reflects the efforts of workers who came forward and spoke up.
In contrast, Lyft maintained that its drivers have always been correctly classified under existing law. The legal action was preceded by the passage of Proposition 22 in November 2020.
Previously, Uber and Lyft jointly agreed to pay $328 million to settle similar claims brought by New York’s attorney general in 2023.
