
09/27/2025
🚨 Lyft Pays $19.4M for Misclassifying Drivers 🚨
New Jersey just ruled that Lyft misclassified over 100,000 drivers as contractors instead of employees — and now owes $19.4 million in back contributions, penalties, and interest.
👉 For small businesses, this is a wake-up call. Misclassifying workers isn’t just a paperwork mistake — it can:
✔️ Trigger audits, fines, and back taxes
✔️ Damage your reputation with employees & clients
✔️ Disrupt operations when forced to reclassify roles
💡 Takeaway: If you have contractors or 1099s, make sure you’re classifying them correctly. The rules are tightening, and the cost of getting it wrong is steep.
🔗 Read more here: Reuters
💬 What do you think — are businesses taking enough care with worker classification?