By: Richard L. Smith
Lyft has agreed to pay more than $19.4 million to New Jersey following a state audit that found the ride-share company misclassified over 100,000 drivers as independent contractors, according to a statement released by the New Jersey Attorney General’s Office.
The audit, conducted by the Department of Labor and Workforce Development (NJDOL), reviewed Lyft’s records between 2014 and 2017.
Officials determined the company failed to make required contributions to unemployment, disability, and family leave insurance trust funds, as well as workforce development funds.
State Labor Commissioner Robert Asaro-Angelo said the misclassification denied workers access to critical protections, including unemployment benefits, minimum wage, overtime pay, and family leave.
“There is no reason temporary or on-demand workers who work flexible hours can’t be treated like other employees,” he said.
Lyft initially contested the findings, paying $10.8 million to halt further interest charges.
But in August 2025, just before scheduled hearings, the company withdrew its challenge and paid the remaining $8.5 million in penalties and interest.
Attorney General Matthew J. Platkin said the settlement underscores the state’s commitment to protecting workers.
“We will not allow businesses to exploit workers by misclassifying them, stripping employees of essential benefits and avoiding their responsibility to support programs that protect our workforce,” he said.
State officials noted that all recovered funds are returned to worker benefit programs, helping strengthen one of the nation’s strongest unemployment insurance reserves.