Lyft Agrees To Pay $272.5 Million To Settle Worker Classification Lawsuit
Uber and Lyft were sued by the state of California in 2020 for misclassifying employees as contractors.
BreizhAtao/Shutterstock
Lyft will pay $272.5 million to settle a May 2020 lawsuit that alleged both it and Uber were misclassifying employees as contractors, California Attorney General Rob Bonta announced in a statement on Thursday. The lawsuit was filed following the passage of Assembly Bill 5, which classified gig workers as employees, but before the reclassification introduced by the passage of Prop 22.
If the settlement is approved by the court, Lyft will pay $272.5 million in penalties, with at least $237,075,000 of that total reserved for paying back workers for the minimum wage and benefits they're owed. "Driver eligibility and compensation will be based on the number of hours and miles driven between April 5, 2016, through December 15, 2020," the statement says.
The passage of Assembly Bill 5 in 2019...
Copyright of this story solely belongs to www.engadget.com. To see the full text click HERE
