Lyft is paying $272.5M to settle lawsuit over how it classified drivers

Lyft agreed to pay $272.5 million to settle a California Labor Commissioner lawsuit that accused the company of misclassifying drivers as independent contractors, denying them minimum wage, overtime, paid sick leave, and timely wage payments from April 6 2016 to December 15 2020. The settlement, pending judicial approval, will redirect the funds to drivers who filed wage claims, while Lyft maintains that it avoids prolonged litigation and can focus on business objectives.