Lyft reaches an agreement to pay $272.5 million to resolve claims that it misclassified drivers in California as independent contractors rather than employees. The settlement addresses allegations that the company did not treat drivers as workers entitled to wage and employment protections.

Quartz and Courthouse News report that the settlement is subject to court approval, and that it covers alleged wage theft for drivers classified as independent contractors between 2016 and 2020. The Independent adds that the agreement stems from claims brought by California and includes participation by three of the largest cities, describing the arrangement as an effort to reduce labor costs through the independent-contractor classification.

While the outlets emphasize different parts of the case—some focus on the misclassification theory, others highlight the wage theft period or the involvement of governmental plaintiffs—the reported settlement terms and the underlying dispute over employment status are consistent.