Lyft has paid US$19.4 million to New Jersey after a state audit found the company misclassified over 100,000 drivers as independent contractors between 2014 and 2017.

Lyft, a San Francisco-based ride-hailing firm, withdrew its request to challenge the New Jersey Department of Labor and Workforce Development’s audit, which led to the payment.

The state said Lyft owed more than US$10.8 million in back contributions for unemployment, disability, and family leave funds, plus US$8.5 million in penalties and interest.

Lyft paid the full amount after ending its legal challenge.

🔗 Source: Reuters

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