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flag Lyft pays $19.4M to New Jersey to settle misclassification of drivers.

flag Lyft has paid $19.4 million to New Jersey to settle a dispute over misclassifying over 100,000 drivers as independent contractors from 2014 to 2017, denying them employee benefits like minimum wage, overtime, unemployment insurance, and workers’ compensation. flag The state audit found Lyft owed more than $10.8 million in contributions plus interest, which it paid after withdrawing a challenge to the findings just before a hearing. flag Funds will go to New Jersey’s Unemployment Insurance Trust Fund to support workers’ benefits and maintain fairness for compliant employers. flag The case highlights the state’s enforcement of worker classification laws.

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