Lyft reaches $272.5 million California driver misclassification settlement

By Public Technologies
  • Lyft reached a settlement, pending court approval, to resolve claims it misclassified California drivers as independent contractors from April 5, 2016 to Dec. 15, 2020.
  • Total settlement cost set at $272.5 million, inclusive of attorneys’ fees, costs, expenses.
  • Lyft can pay over four years; 5% simple interest accrues after year one, capped at $12.4 million.
  • Lyft recorded a $210 million accrual in Q4 2025 tied to the matter; excluded from Adjusted EBITDA.
  • Third-quarter 2026 guidance for Gross Bookings, Adjusted EBITDA, margin unchanged as of Sept. 30, 2026.


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