Lyft paid $19.4 million to the state of New Jersey after an audit found the company misclassified over 100,000 drivers as independent contractors. State officials announced this settlement on September 18, 2025.
The payment addresses claims that drivers should have been classified as employees, which would entail different labor protections and benefits. This settlement highlights the ongoing legal and regulatory challenges faced by gig economy companies regarding worker classification.
This financial outlay represents a significant cost for Lyft and underscores the material risks associated with its business model in various jurisdictions. The outcome could influence future labor practices and potential liabilities in other states.
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