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Lyft Settles California Worker Classification Lawsuit for $272.5 Million

Lyft has reached a settlement with the state of California, agreeing to pay $272.5 million to resolve a lawsuit concerning the misclassification of workers. The lawsuit, originally filed in 2020 alongside a similar case against Uber, alleged that both companies improperly categorized their drivers as independent contractors rather than employees. This settlement marks a significant development in the ongoing legal scrutiny surrounding gig economy business models and worker classification practices in California.

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