Lyft has agreed to pay $272.5 million to resolve a California lawsuit alleging it misclassified drivers as independent contractors rather than employees, depriving them of minimum wage, overtime, paid sick leave and other workplace protections. The proposed settlement, which requires judicial approval, covers alleged violations from April 6, 2016, through December 15, 2020. The California Labor Commissioner's Office filed the case in August 2020, and related actions involving the California Attorney General, city attorneys and private claimants were coordinated in San Francisco Superior Court in September 2021. Labor Commissioner Lilia García-Brower said the agency will forgo its portion of the recovery so more funds can go to drivers who filed wage claims. Lyft said the agreement would avoid prolonged litigation and allow management to focus on business objectives. Drivers for Lyft and Uber are now classified as contractors under Proposition 22, which voters approved in 2020, while Uber continues to face a similar Labor Commissioner's Office case.