Lyft agrees to $272.5m California driver settlement, subject to court approval

Lyft agreed to pay $272.5m to resolve allegations that it misclassified California drivers as independent contractors from April 2016 through December 2020, the company said in a Thursday filing.

The deal needs court approval. It includes attorney fees, costs and expenses, and lets Lyft pay over four years. Simple interest of 5 percent begins after the first year and is capped at $12.4m.

Lyft made no admission. The agreement also contains no prospective operating commitments.

The company recorded a $210m accrual in late 2025. It said its third-quarter gross bookings and adjusted earnings guidance remained unchanged as of September 30.