Largest employment settlement in California history compensates Lyft drivers who were illegally misclassified as independent contractors. 

A coalition of public prosecutors and private plaintiff’s counsel has secured a record-breaking $272.5 million settlement for Lyft drivers who were allegedly misclassified as independent contractors and deprived of legal protections under California employment law, including for expense reimbursement, minimum wages, overtime pay, meal and rest breaks, and related penalties.  

The settlement — the largest misclassification settlement in California history — resolves more than eight years of litigation, and claims brought by Lyft drivers represented by the law firms Outten & Golden LLP, Olivier & Schreiber PC, and Lichten & Liss-Riordan P.C.; the California Attorney General and the City Attorneys of San Francisco, Los Angeles, and San Diego, and the California Labor Commissioner. Eligible Lyft drivers who worked from 2016 to 2020 will be paid a proportion of the settlement based on the number of miles they drove to pick up and drop off passengers. 

“App-based transportation companies are using their power to unfairly squeeze money from millions of workers,” said Outten & Golden partner Jahan C. Sagafi. “We hope this settlement sends a message of hope to drivers, who are best protected when workers, government agencies, and private lawyers collaborate to pursue justice together.” 

PAGA plaintiff Brandon Olson was represented by Outten & Golden attorneys Jahan Sagafi, Rachel Bien, Adam Koshkin, Alina Pastor-Chermak and Mohsin Mirza; and Christian Schreiber of Olivier & Schreiber P.C.