Lyft California Driver Settlement: Up to $500, Claims Not Open Yet

A proposed settlement would resolve claims that Lyft wrongly classified its California drivers as independent contractors rather than employees from 2016 through 2020, allegedly cutting them off from protections like minimum wage, overtime pay, and reimbursement for business expenses. The case was pursued by California's Attorney General, the City Attorneys of Los Angeles, San Diego, and San Francisco, the state Labor Commissioner, and two drivers suing under California's Private Attorneys General Act. Lyft denies any wrongdoing and isn't admitting that drivers were ever employees, the settlement resolves the dispute without that concession.

Nothing is final yet. The deal has been signed and sent to the San Francisco Superior Court, where a judge must still approve it and enter judgment before any payments can go out. Even after approval, there's a brief waiting period before money moves.

You may be covered if you drove for Lyft in California between April 5, 2016 and December 15, 2020 and met a minimum driving-time threshold, or if you already had a wage claim on file against Lyft with the Labor Commissioner as of when that claim was filed.

All the settlement money goes into a shared fund, none of it reverts to Lyft. Roughly 87 percent of that fund is set aside for drivers, with the remainder covering civil penalties owed to the state and attorneys' fees.

There's no need to submit paperwork or proof: Lyft's own records will determine who qualifies and how much they receive. The settlement administrator may contact you to verify or update your contact details so your payment can reach you, and will later launch a website, email address, and phone line for questions. Keep an eye out for a notice by mail or email once those resources are live to confirm whether you're included.