Lyft Agrees to Proposed $272.5 Million Settlement of California Driver Misclassification Claims

Lyft, Inc. has agreed to a proposed $272.5 million Lyft settlement resolving coordinated California actions alleging that Lyft misclassified drivers using its platform as independent contractors rather than employees. The settlement covers alleged unlawful conduct before Proposition 22 took effect on December 16, 2020.

According to the September 30, 2026 Stipulation for Entry of Final Judgment, Proposed Stipulated Final Judgment, and Settlement Agreement Exhibit, the actions were brought by the People of the State of California, the California Labor Commissioner, and Private Attorneys General Act of 2004 plaintiffs Brandon Olson and Million Seifu. The matters are coordinated in Uber Technologies Wage and Hour Cases, Case No. CJC-21-005179, JCCP No. 5179, in the Superior Court of California, County of San Francisco.

What Do the California Actions Allege?

The proposed stipulated judgment states that the four complaints each allege that Lyft “misclassified drivers using the Lyft platform as independent contractors”, thereby allegedly denying them benefits and protections afforded to employees under California law.

The settlement agreement similarly states that the actions generally allege that Lyft misclassified drivers instead of providing them with the “pay and benefits to which they were entitled as employees under California law.”

Which Lyft Drivers Are Covered?

The settlement defines “Covered Drivers” as drivers who provided at least one ride that started or ended in California using the Lyft platform from April 5, 2016 through December 15, 2020.

The agreement separately defines “Eligible Drivers” as Covered Drivers who meet a minimum threshold of driving hours in California during the covered period, based on time spent driving to pick up and waiting for riders after accepting a trip (“P2 Time”) and time spent transporting riders (“P3 Time”).

The People and the California Labor Commissioner will determine the minimum-hours threshold after Lyft provides the required driver data. Certain Covered Drivers who had pending wage claims against Lyft before the California Labor Commissioner when the Labor Commissioner’s action was filed (“Berman Claimants”) also qualify as Eligible Drivers.

What Does the Proposed $272.5 Million Settlement Provide?

The settlement agreement provides that Lyft will pay $272.5 million, plus specified interest, into a settlement fund. The fund is to be used for eligible driver awards, civil penalties, PAGA attorneys’ fees, approved service awards, and other settlement-related costs.

After specified allocations, the remainder is designated as the Driver Compensation Fund. Under the proposed plan of allocation, payments to Eligible Drivers are generally based on P2 and P3 miles driven during the relevant period, with separate allocation provisions for Berman Claimants.

Lyft Denies Liability

The proposed stipulated judgment states that “LYFT has denied all such allegations” and that the court has made “no determination of liability” regarding the plaintiffs’ allegations.

The settlement agreement also states that the parties agreed to settle the claims without admissions by Lyft of wrongdoing, misconduct, illegal acts, or the facts alleged in the coordinated proceedings.

California Workers with Wage and Classification Questions

Worker classification can affect rights involving wages, expense reimbursement, and other protections under applicable law. Workers with questions about whether they have been properly classified or paid may wish to speak with an employment attorney about their individual circumstances.

For a free, no-obligation legal evaluation:

Michael Yarnoff, Esq.
(215) 792-6676, Ext. 804
[email protected]
[email protected]

About Kehoe Law Firm, P.C.

Kehoe Law Firm, P.C. is a nationally recognized, plaintiff-side class action law firm representing investors, consumers, and employees in matters involving securities fraud, corporate misconduct, mergers and acquisitions, antitrust violations, whistleblower claims, data breaches, consumer fraud, employment law violations, and ERISA and retirement plan litigation. Its attorneys have served as lead or co-lead counsel in major securities cases, recovering more than $10 billion for institutional and individual investors.

Kehoe Law Firm’s class action legal services are provided on a contingency-fee basis, meaning plaintiffs are not responsible for attorneys’ fees or litigation expenses. Any request for attorneys’ fees and expenses will be subject to court approval.

PHONE

Tel: 215-792-6676

EMAIL

[email protected]