If you drove for San Francisco-based Lyft in California in the second half of the 2010s, money may be coming your way. The company has agreed to pay $272.5 million to settle claims that it misclassified drivers as independent contractors, the largest wage-and-hour settlement in California history, according to the state Labor Commissioner's Office.
Who's covered
The deal covers work from April 2016 through Dec. 15, 2020, the period before Proposition 22 took effect. Voters approved Prop. 22 in November 2020, letting app companies treat drivers as contractors under a separate set of rules, so the settlement doesn't change how Lyft classifies drivers today or cover later work.
State Attorney General Rob Bonta and the city attorneys of San Francisco, Los Angeles and San Diego sued in 2020, arguing drivers were denied minimum wage, overtime, rest-break pay, expense reimbursement and paid sick leave. The Labor Commissioner filed its own suit in Alameda County the same year.
How much drivers could get
At least $237.075 million, about 87% of the total, is reserved for drivers. Individual payments will be based on how many hours and miles each person drove during the covered years. The Labor Commissioner is giving up its $5.45 million share of penalties so more goes to the more than 1,600 drivers who filed wage claims with the office, CalMatters reported, but the settlement applies to any eligible driver, not just those who filed.
When and how you'd be paid
Don't expect a check right away. The agreement still needs approval from San Francisco Superior Court. After that, a third-party settlement administrator will contact eligible drivers once Lyft starts paying into the fund. No claim form or payment date had been announced as of the Oct. 1 announcement.
Lyft can spread its payments over four years, with 5% simple interest after the first year, capped at $12.4 million, according to its filing with securities regulators. The company said the deal is not an admission of liability and that settling avoids the cost and distraction of long litigation.
If you drove during those years and have moved or changed your phone number or email, it's worth making sure your Lyft account contact info is current so the administrator can reach you.