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

Even after AB 5 took effect, Lyft, Uber, and other companies that relied on gig workers continued to classify their drivers as contractors. That eventually led to legal action from the LCO, California Attorney General and the City Attorneys of Los Angeles, San Diego and San Francisco, as well as private actions filed under California’s Private Attorneys General Act. The cases were coordinated in San Francisco Superior Court in September 2021.

The settlement closes this legal chapter, at least for Lyft. Uber still faces an LCO lawsuit that makes similar allegations.