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Lyft Settles for $19.4M Over Driver Misclassification in NJ

9/21/2025

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Summary

Story summary

Lyft will pay $19.4 million to New Jersey for misclassifying over 100,000 drivers as independent contractors from 2014 to 2017.
The settlement allocates $10.8 million for unpaid taxes and $8.5 million for penalties and interest.
Misclassification has denied drivers benefits like unemployment and family leave.
Lyft will not contest the state's findings but maintains its drivers are independent contractors.
New Jersey is exploring new regulations for worker classification in the ride-hailing sector.

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Story summary

Lyft will pay $19.4 million to New Jersey for misclassifying over 100,000 drivers as independent contractors from 2014 to 2017.
The settlement allocates $10.8 million for unpaid taxes and $8.5 million for penalties and interest.
Misclassification has denied drivers benefits like unemployment and family leave.
Lyft will not contest the state's findings but maintains its drivers are independent contractors.
New Jersey is exploring new regulations for worker classification in the ride-hailing sector.