Lyft—Lyft paid $27 million to settle Massachusetts driver underpayment lawsuit
Lyft paid $27 million as part of $175 million settlement (combined with Uber) resolving Attorney General's multi-year litigation originally filed in 2020. Settlement provides at least $140 million total in back pay to drivers who worked between July 14, 2020 and July 2, 2024. Requires minimum earnings floor of $32.50 per hour (now $34.48 as of January 15, 2026) for engaged time, adjusted annually by 3% or inflation rate. Also provides health insurance stipend for drivers working 15+ hours per week, occupational accident insurance up to $1 million, deactivation appeal rights, and earnings transparency. As result of settlement, Lyft withdrew support for ballot question modeled on California's Proposition 22 that would have codified independent contractor status.
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)
Massachusetts secured $27M from Lyft for driver underpayment
Massachusetts Attorney General Andrea Campbell secured $27 million from Lyft as part of $175 million settlement resolving multi-year litigation originally filed in 2020. Settlement provides minimum earnings floor, health insurance stipend, occupational accident insurance, and other protections. Lyft withdrew support for Proposition 22-style ballot question as result.