Lyft settles landmark driver misclassification lawsuit for $272.5M
Summary
Lyft has agreed to a 272.5 million dollar settlement with California and several city attorneys over allegations it misclassified drivers as independent contractors between 2016 and 2020. The case, part of a broader gig economy scrutiny, highlights wage theft concerns and AB5/Prop 22 dynamics, with critics arguing the settlement is insufficient for drivers. Uber’s case remains ongoing, and the settlement underscores ongoing policy debates around worker classification in the tech-enabled economy.