Lyft will pay more than $270 million in California wage theft settlement
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Set us as preferred The ride-hailing company Lyft will pay $272.5 million to settle a California wage-and-hour lawsuit, marking the largest such settlement in the state’s history.The settlement will resolve allegations that Lyft misclassified its workers as independent contractors between 2016 and 2020 and denied them wage and workplace protections that were required under state law at the time.
Eighty-seven percent of the total settlement will go directly to drivers.Business California Supreme Court upholds Prop.
22, which allows Uber, Lyft and other gig economy companies to classify their drivers as independent contractors.“Lyft believes drivers have always been properly classified under the law, and we’re glad to put this case behind us,” the company said in a statement.“We remain laser focused on helping create more earnings for drivers and more affordable rides for riders.”In 2020, California passed Proposition 22, which allows Lyft and Uber drivers to be classified as contractors.
The California Labor Commissioner’s Office filed suit in 2020 in Alameda County Superior Court, alleging that Lyft was not providing to its workers minimum wages and overtime, rest-break premiums, reimbursement for business expenses, accurate wage statements, timely wage payments and sick leave.Business The ride-hailing company Uber is cutting thousands of jobs to simplify its management structure, the chief executive said in a letter to employees Wednesday.“If approved, this settlement closes a chapter from a very different time, before Prop 22,” Lyft said.
“The vast majority of rideshare drivers in California have always wanted to be independent contractors, and voters affirmed that when they passed Prop 22 in 2020.”The association Rideshare Drivers United helped drivers file wage claims against San Francisco-based ...