In a lawsuit filed in 2020, California alleged that Lyft misclassified its drivers as independent contractors instead of employees between 2016 and 2020, denying them minimum wage, overtime and reimbursement for work-related expenses.
On October 1, 2026, the California Attorney General, the city attorneys of San Francisco, San Diego and Los Angeles, the state Labor Commissioner and private plaintiffs announced that Lyft will pay $272.5 million in restitution and penalties. At least $237,075,000, or 87 percent, is reserved for drivers, based on hours and miles driven between April 5, 2016, and December 15, 2020. The settlement is subject to approval by San Francisco Superior Court, where the case against Uber continues.
Once the settlement is approved and funded, a third-party administrator will contact eligible drivers and set up a website, email address and call center.
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