California Seeks Settlement With Uber, Lyft Over $1.3B Wage Theft Claims

Thousands of Uber and Lyft drivers in California are rallying for justice in a major wage theft lawsuit, claiming they were misclassified as independent contractors, which denied them essential worker rights and benefits. The lawsuit, initiated by the California Justice Department and various city governments, seeks billions in compensation for the estimated 250,000 eligible drivers from 2016 to 2020. Advocates argue that the passing of Proposition 22 in 2020, which allowed gig companies to continue treating drivers as independent contractors, has failed to deliver the promised benefits. Drivers are pushing for settlement negotiations with Uber and Lyft to address lost wages and establish better compensation standards moving forward. Recent demonstrations have taken place in Los Angeles, San Francisco, and San Diego, where drivers demand accountability and support from state officials. As settlement talks progress, both companies have remained largely silent on the matter, with Uber stating that voters have made their choice regarding driver classification.