Lyft—Lyft paid $19.4 million for misclassifying over 100,000 New Jersey drivers
New Jersey Department of Labor audit found Lyft improperly classified more than 100,000 drivers as independent contractors from 2014 to 2017, depriving them of unemployment insurance, family leave, and disability benefits. Settlement includes $10.8 million for unpaid unemployment, family leave, and disability taxes, plus $8.5 million in penalties and interest. Lyft initially contested findings in 2022, case shifted to Office of Administrative Law. In August 2025, days before first hearing date, Lyft withdrew request for hearing and paid remaining balance. Lyft spokesperson stated 'While we disagree with the NJDOL's findings, we will not be pursuing further challenges to the assessment.'
Scoring Impact
| Topic | Direction | Relevance | Contribution |
|---|---|---|---|
| Gig Worker Rights | -against | primary | -1.00 |
| Worker Rights | -against | primary | -1.00 |
| Overall incident score = | -0.221 | ||
Score = avg(topic contributions) × significance (high ×1.5) × confidence (0.59)× agency (compelled ×0.25)
Evidence (1 signal)
New Jersey announced Lyft paid $19.4M for driver misclassification
New Jersey Department of Labor and Attorney General announced Lyft paid $19.4 million after audit found company improperly classified more than 100,000 drivers as independent contractors from 2014-2017. Payment includes $10.8M for unpaid taxes plus $8.5M penalties and interest. Lyft withdrew hearing request days before scheduled date and paid balance.