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Judge approves $27M settlement in Lyft class-action lawsuit

person driving holding a phone with the Lyft logo on screen

Ride-hailing company Lyft will pay $27 million to settle a class-action lawsuit brought by drivers who sought to be classified as employees, after a judge gave the agreement final approval Thursday.

Though the settlement results in payment to drivers and some changes to Lyft’s terms of service for drivers, it does not decide the question of whether drivers are employees or independent contractors.

That matter “will have to wait for another day,” said plaintiff attorney Shannon Liss-Riordan.

The settlement approved by U.S. District Judge Vince Chhabria in San Francisco covers drivers who worked for Lyft in California between May 25, 2012, and July 1, 2016. Drivers who have driven the most will receive the biggest payments.

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