Lyft settles landmark driver misclassification lawsuit for $272.5M
Critics say workers are still owed far more.
Critics say workers are still owed far more.
The short version
- The case dates back to May 2020, when then-Attorney General Xavier Becerra, who is now the Democratic candidate for governor, sued both Uber and Lyft .
- That lawsuit said the ridehailing companies evaded state law when they declared that their drivers were not employees.
- Thursday’s settlement affects only Lyft, while the case against Uber continues.
What happened
“We are proud to announce this landmark win for workers, the largest misclassification settlement in California’s history,” Attorney General Rob Bonta said in the statement. “When companies misclassify their workers, they deny them critical protections and shift the burden onto taxpayers.
Why it matters
This historic settlement sends a clear message: Companies must follow the law, pay their fair share, and play by the rules.” Ever since these rideshare companies began in the early 2010s , they have been scrutinized for underpaying and mistreating drivers.
Summary by Nerd News Network. Read the full article at Ars Technica via the links above and below.