Uber and Lyft Settle Wage Theft Claims in California

In a significant development for gig economy workers, Uber and Lyft have reached a settlement with the state of California over allegations of wage theft. The settlement, announced on March 26, 2025, addresses claims that the ride-sharing giants misclassified drivers as independent contractors, thereby denying them employee benefits and wages.

The agreement comes after months of negotiations and public outcry, including a notable rally by drivers in downtown Los Angeles demanding justice. The settlement amount, while not disclosed, is believed to be in the billions, reflecting the scale of the alleged wage theft. This case has been closely watched as a potential precedent for gig worker rights across the United States.

California Attorney General has been at the forefront of this legal battle, pushing for accountability and fair compensation for the affected drivers. The settlement is seen as a victory for labor rights advocates who have long argued for better protections for gig workers. The terms of the settlement are expected to include back pay and changes to how drivers are classified in the future.

• California
• Gig Workers
• Lyft
• Uber