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Lyft Pays $19.4M for Misclassifying Drivers in NJ

9/19/2025

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Summary

Story summary

Lyft paid New Jersey $19.4 million after an audit revealed it misclassified over 100,000 drivers as independent contractors from 2014 to 2017.
This payment includes $10.8 million for unpaid taxes and $8.5 million in penalties.
Misclassification denies drivers benefits like minimum wage and sick leave, according to state officials.
Lyft dropped its challenge to the audit findings before a hearing.
New regulations may classify ride-hailing drivers as employees, affecting their independent contractor status.

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Story summary

Lyft paid New Jersey $19.4 million after an audit revealed it misclassified over 100,000 drivers as independent contractors from 2014 to 2017.
This payment includes $10.8 million for unpaid taxes and $8.5 million in penalties.
Misclassification denies drivers benefits like minimum wage and sick leave, according to state officials.
Lyft dropped its challenge to the audit findings before a hearing.
New regulations may classify ride-hailing drivers as employees, affecting their independent contractor status.