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Lyft to pay $272.5 million to settle California misclassification claims - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2026 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Lyft to pay $272.5 million to settle California misclassification claims by Louise Esola General liability Oct 1, 2026 Lyft will pay $272.5 million plus interest to resolve allegations that it misclassified California drivers as independent contractors and denied them wages and workplace protections, the California Labor Commissioner’s Office said Thursday. The agency described the agreement as the largest wage-and-hour settlement in California history. Drivers will receive 87% of the total. The settlement covers alleged violations from April 6, 2016, through Dec. 15, 2020. It does not require Lyft to reclassify drivers going forward or provide relief for work performed after that period, according to the announcement. The Labor Commissioner’s Office sued Lyft in Alameda County Superior Court in August 2020, alleging drivers were employees under state law at the time. The complaint alleged they were denied minimum wages, overtime, rest-break premiums, business expense reimbursements, paid sick leave and other protections. The complaint also said the company failed to cover or reimburse drivers for workers’ compensation. The lawsuit was coordinated in San Francisco Superior Court in September 2021 with an enforcement action brought by California’s attorney general and the city attorneys of Los Angeles, San Diego and San Francisco, as well as private actions under the state’s Private Attorneys General Act. More than 1,600 drivers who filed administrative wage claims will receive additional funds after the agency redirected its $5.45 million share of state penalties. Those claimants will also receive double the mileage credit used to calculate their payments. California voters approved Proposition 22 in November 2020, establishing a separate classification framework for qualifying app-based drivers that took effect after the period covered by the settlement, the agency said. 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