Lyft is paying $272.5M to settle lawsuit over how it classified drivers

Automated excerpt

Lyft has agreed to pay $272. 5 million to settle a lawsuit accusing the ride-hailing company of violating California law by misclassifying drivers as independent contractors, instead of employees. The settlement stems from a lawsuit filed by the California Labor Commissioner’s Office in August 2020 that accused Lyft of treating drivers as independent contractors rather than as employees, as required under state law at the time. Even after AB 5 took effect, Lyft, Uber, and other companies that relied on gig workers continued to classify their drivers as contractors.

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