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Lyft settles driver classification lawsuit for $272.5 million

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Lyft has agreed to pay $272.5 million to settle a lawsuit regarding its classification of drivers. The legal dispute originated in 2020 and centered on whether drivers should be considered employees or independent contractors. The settlement resolves this long-standing case for the ride-hailing company. It addresses the core issue of worker classification within the gig economy without altering the current contractor model.

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