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Lyft Will Pay $272.5 Million to Settle California Driver Misclassification Claims

California and three cities called it the largest wage-theft settlement in state history. Lyft says its drivers "have always been properly classified under the law."

DW

By Dana Whitfield

Oct 3, 2026 · 2 min read

Lyft has agreed to pay $272.5 million to resolve claims brought by the state of California and the cities of Los Angeles, San Francisco and San Diego that it misclassified drivers as independent contractors, officials announced Friday. The agreement is subject to court approval.

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DW

Dana Whitfield

Leadership Editor

Dana reports on boards, succession and executive pay. She has interviewed more than 200 sitting chief executives.

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