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Lyft to pay $272.5M in California driver misclassification lawsuit. Updated October 1, 2026 8:32 AM PDT Published October 1, 2026 8:10 AM PDT SHENZHEN, CHINA - JULY 29: In this photo illustration, a smartphone displays the logo of Lyft Inc. (NASDAQ: LYFT), an American ride-hailing company that operates a transportation network platform connecting passengers with drivers, in front of a scre The brief. * * Lyft has agreed to pay $272.5 million - the largest wage-and-hour settlement in state history - to settle a suit alleging the rideshare company misclassified California drivers as independent contractors, denying them wage and workplace protections required under state law. * Lyft said that if the court approves this settlement, it closes a chapter from a "very different time, before Prop. 22." * California voters approved Proposition 22 in November 2020, establishing a separate classification framework for app-based drivers who meet specified criteria. SAN FRANCISCO - Lyft has agreed to pay $272.5 million - the largest wage-and-hour settlement in state history - to settle a suit alleging the rideshare company misclassified California drivers as independent contractors, denying them wage and workplace protections required under state law, plaintiffs and state officials announced on Thursday. Lyft to pay $272.5M. Why you should care: KTVU's Emma Goss reports. Of the total settlement, 87% will go directly to drivers. The settlement was announced by the California Labor Commissioner's Office, California Attorney General Rob Bonta, and the cities of San Francisco, San Diego and Los Angeles, who were all part of the case that originated in Alameda County and then consolidated in San Francisco Superior Court in September 2021. The same plaintiffs are also litigating this matter against Uber, the remaining defendant in the case, Uber Technologies Wage and Hour Cases in San Francisco Superior Court. "Every worker deserves to be paid fully and fairly," San Francisco City Attorney David Chiu said in a statement. "For years, Lyft drivers provided essential services keeping our communities moving while being denied the wages and benefits they earned. Misclassification exploits workers, fuels inequality, and creates an unfair economy. This is the largest wage and hour settlement in California history, reflecting both the seriousness of the harm and our unwavering commitment to stand up for workers across California." Bonta said that rideshare companies like Lyft have "enjoyed massive growth and profits on the backs of drivers over the past decade, many who are from immigrant communities and communities of color." "Lyft's success would not be possible without the drivers who Lyft sought to unfairly short-change hard-working employees deserve full compensation for their labor," Bonta said. The settlement, subject to court approval, resolves claims against Lyft for misclassifying their drivers as independent contractors in violation of the California Labor Code and Unfair Competition Law between 2016 and 2020. Lyft: closing chapter before Prop. 22. The backstory: Uber, Lyft and DoorDash spent $200 million to pass Prop 22. The law it overrode, forced them and many other employers to hire most freelancers, independent contractors and gig workers as full-on employees with pay and benefits. In a statement, Lyft spokesman George Flyyn said that if the court approves this settlement, it closes a chapter from a "very different time, before Prop. 22." "The vast majority of rideshare drivers in California have always wanted to be independent contractors, and voters affirmed that when they passed Prop 22 in 2020, giving drivers new benefits and protections while preserving their flexibility. And since then, Lyft has gone further than Prop 22 requires, becoming the only rideshare company with a fee cap," Flynn wrote. "Lyft believes drivers have always been properly classified under the law, and we're glad to put this case behind us. We remain laser focused on helping create more earnings for drivers and more affordable rides for riders." California voters approved Proposition 22 in November 2020, granting app-based transportation and delivery companies an exception to Assembly Bill 5 by classifying their drivers as independent contractors, rather than employees. Prop. 22 was challenged in California state courts in 2021, and was upheld on appeal in 2023 and by the California Supreme Court in 2024. Because that framework took effect after the period covered by this case, the settlement does not require Lyft to reclassify drivers going forward or provide relief for later work, the Labor Commissioner's Office explained. How to get paid. What's next: The Labor Commissioner's Office filed a lawsuit against Lyft in Alameda County Superior Court in August 2020. The lawsuit alleged that Lyft treated drivers as independent contractors rather than as employees as required under state law at the time. As a result, plaintiffs alleged that drivers were denied minimum wages and overtime, rest-break premiums, reimbursement for business expenses, accurate wage statements, timely wage payments, paid sick leave and other protections. The restitution amount will be set into a fund managed by a third-party settlement administrator, officials said. Driver eligibility and compensation will be based on the number of hours and miles driven between April 5, 2016, through December 15, 2020. After the settlement is approved and Lyft begins making payments to the settlement fund, eligible workers will be contacted by the third-party settlement administrator about when to expect a payment. The settlement administrator will establish a website, email address, and call center to inform and answer questions from drivers who believe they are eligible for restitution. Officials said additional details about these resources will be available in the near future. The Source: Information for this story comes from the California Labor Commissioner's Office, and a joint statement from California AG Rob Bonta and the San Francisco City Attorney's Office, and a statement from Lyft.

Lyft brings North American app to Europe. US ride-hailing company Lyft has begun rolling out its app in Europe, allowing North American customers to use their existing account when booking rides in European cities. The rollout starts in Barcelona and Hamburg, with London, Rome, Paris, Berlin, Athens and Warsaw among the cities due to follow during October. Lyft said the app will be available to visiting customers across Spain, Italy, Greece, Poland, England, Scotland, Ireland, Austria, France and Germany by the end of the month. The service is powered by a new backend system that connects the Lyft app to third-party marketplaces and gives its customers access to their driver supply. Lyft said the framework was built specifically for its European expansion and can be used to connect additional marketplaces in other countries. "Every market we connect makes the network stronger for riders and drivers. This expansion takes us from being your neighborhood rideshare app to a global, multi-mobility platform," said Sid Patil, Lyft's Chief Rideshare and Marketplace Officer. European riders will continue using the Freenow by Lyft and Gett by Lyft apps. Drivers on those platforms will also be able to receive demand from North American customers using the Lyft app. The rollout follows Lyft's expansion into Europe through acquisitions. The company completed its acquisition of European taxi platform Freenow in July 2025, giving it access to operations across nine European countries and more than 180 cities. Lyft also completed its acquisition of Gett's UK business in May. Gett is a London black-cab app, and the acquisition brought its driver network and business customers into Lyft's London operations. Lyft has been expanding beyond ride-hailing in Europe too. Its Lyft Urban Solutions division has announced plans to acquire Serveo's Spanish bike share business, which operates systems including Barcelona's Bicing, Bilbao, Valladolid and Zaragoza. The new app integration gives Lyft a way to connect its North American customer base with the European transport networks it has built through those moves. The company said the underlying technology can support additional third-party marketplaces as it expands. Customers can use the same Lyft account and payment methods they use in North America. Lyft said it plans to let riders choose between paying in their home currency and the local currency within the next year. ADVERTISING

Ridesharing platform Lyft hits the road in Europe. Irish launch expected at the end of this month October 1, 2026 Ridesharing platform Lyft is rolling out across Europe this month, starting with early access in Barcelona and Hamburg. Over the course of October, Lyft app will become available in a number of major European cities, including London, Rome, Paris, Berlin, Athens and Warsaw. By the end of October, travellers in Ireland, Spain, Italy, Greece, Poland, England, Scotland, Austria, France and Germany will be able to use the same app when travelling from North America to Europe. Lyft is an American transport company that offers, among other things, taxi services, rental cars and shared e-scooters, as well as shared bikes. In 2024, Lyft handled over 800 million rides. Users from North America can use the same app in the United States, Canada and Europe. No new download is required. With new technology, the Lyft app can be linked to external mobility platforms. This lays the foundation for the company's further international expansion. Behind the scenes, Lyft has developed a new back-end framework that allows the app for travellers to be connected to external mobility platforms. As a result, users gain access to the offering from drivers on those platforms. The technology was developed specifically for the European expansion. Its introduction marks the first application of it and makes it possible to connect more mobility platforms in more countries in the future. Travellers in Europe can continue to use their existing Lyft app, account and payment methods from the US and Canada. Over the coming year, it should also become possible, when taking a ride, to choose between paying in their own currency, such as US dollars, or the local currency, such as euros. For the time being, European users can continue to use the existing Freenow by Lyft and Gett by Lyft apps. For drivers on these platforms, the expansion provides a new source of demand, as North American travellers can use their Lyft app in Europe.