City Attorney Ferbert Helps Secure $272.5 Million Lyft Settlement for Misclassified Drivers

San Diego City Attorney Heather Ferbert joined California Attorney General Rob Bonta and the city attorneys of San Francisco and Los Angeles in announcing a $272.5 million settlement with rideshare company Lyft, resolving allegations that between 2016 and 2020 the company committed wage theft by misclassifying its drivers as independent contractors rather than employees.

The settlement, which is subject to court approval, resolves claims against Lyft for violating California Labor Code and the state's Unfair Competition Law. At least $237 million of the settlement will be reserved for California drivers who worked for Lyft during the four-year period, with millions of dollars expected to go to drivers in San Diego.

"This is what's possible when state and local prosecutors stand together for workers," Ferbert said in a statement. "I'm grateful to Attorney General Bonta and our partners for years of persistence through every step of this complex lawsuit. For San Diego, that persistence means millions of dollars going back to drivers, many of whom were working to support their families."

Ferbert added that while the settlement is an important step, it "doesn't close the book on misclassification in the gig economy. There is still a lot at stake for drivers, and my Office will keep fighting until every worker gets what they've earned."

Largest misclassification settlement in state history

The settlement is the largest wage and hour settlement in California history, according to Attorney General Bonta, who called it "a landmark win for workers."

"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," Bonta said. "Lyft's success would not be possible without the drivers who Lyft sought to unfairly short-change."

San Francisco City Attorney David Chiu said the case reflects "both the seriousness of the harm and our unwavering commitment to stand up for workers across California."

After the settlement is approved and Lyft begins making payments to the settlement fund, eligible workers will be contacted by a third-party settlement administrator. Drivers who believe they are eligible for restitution can find more information through the California Attorney General's office.