Lyft has agreed to a $272.5 million settlement in California over allegations of misclassifying drivers as independent contractors instead of employees between 2016 and 2020, citing violations of Assembly Bill 5. The case, initiated in 2020 by then-Attorney General Xavier Becerra, marks the largest misclassification settlement in California history, while the parallel lawsuit against Uber continues.
Background
California's AB5, enacted in 2019, established strict criteria for classifying workers as employees versus independent contractors, directly targeting the business model of rideshare and delivery platforms. This landmark settlement sets a precedent for how platform companies must treat their workforce under state labor law.
- Source
- Ars Technica
- Published
- Oct 3, 2026 at 03:09 AM
- Score
- 8.0 / 10