# Lyft California driver misclassification settlement > Live situation record from CLSTR: https://clstr.news/situations/lyft-california-driver-misclassification-settlement > Updated: 2026-10-04T23:22:42.000Z. Sources: 16. Developments: 2. Lyft has agreed to a $272.5 million settlement to resolve allegations that it misclassified drivers as independent contractors rather than employees in California between April 2016 and December 2020. Led by California Attorney General Rob Bonta and various city attorneys, the legal action alleged violations of the California Labor Code and Unfair Competition Law, including claims of wage theft. The settlement aims to address the denial of essential protections such as minimum wage, overtime, and sick leave. Approximately 87% of the funds are designated for direct distribution to eligible drivers based on hours and miles driven. Additionally, over 1,600 drivers who filed wage claims through the California Labor Commissioner’s Office will receive extra funds from $5.45 million in penalties. The agreement includes a multiplier that doubles the mileage used to calculate certain payments for wage claimants. Lyft stated the agreement avoids the costs of prolonged litigation, noting the dispute pertains to an era prior to the passage of Proposition 22. The settlement does not require Lyft to reclassify drivers moving forward or provide relief for work performed after the specified period. ## Timeline ### 2026-10-04: Lyft to pay $272.5 million to settle California driver misclassification claims Lyft will pay $272.5 million to settle California allegations of misclassifying drivers as independent contractors to avoid paying minimum wages, overtime, and expense reimbursements. 3 sources. https://clstr.news/cluster/lyft-to-pay-2725-million-to-settle-california-driver-misclassification-claims-1 ### 2026-10-01: Lyft to pay $272.5 million to settle California driver misclassification lawsuit Lyft will pay $272.5 million to settle a California lawsuit alleging it misclassified drivers as independent contractors, denying them minimum wage and overtime benefits between 2016 and 2020. 13 sources. https://clstr.news/cluster/lyft-to-pay-2725-million-to-settle-california-driver-misclassification-claims --- Cite as: Lyft California driver misclassification settlement. CLSTR, https://clstr.news/situations/lyft-california-driver-misclassification-settlement