Sept 18 (Reuters) - Lyft ( LYFT ) has paid $19.4 million

to New Jersey after an audit found the ride-sharing company

improperly classified more than 100,000 drivers as independent

contractors, state officials said on Thursday.

Officials including state Attorney General Matthew Platkin

said Lyft ( LYFT ) made the payment after withdrawing its request for a

hearing to challenge an audit by New Jersey's Department of

Labor and Workforce Development of its books and records from

2014 to 2017.

New Jersey said its audit found Lyft ( LYFT ) did not make

contributions to state funds for those years on behalf of

drivers, depriving them of protections such as unemployment

compensation, temporary disability benefits and family leave.

Lyft ( LYFT ) was assessed more than $10.8 million in past-due

contributions, plus more than $8.5 million of penalties and

interest. It paid the $10.8 million to stop interest from

running, and paid the remainder after ending its challenge.

The San Francisco-based company reached a similar $27

million settlement with Massachusetts in June 2024.

In a statement, Lyft ( LYFT ) said it still believes it

classified drivers properly under New Jersey law, and that

drivers overwhelmingly prefer working on their own terms rather

than as employees.

"While we disagree with the NJDOL's findings, we will

not be pursuing further challenges to the assessment," it added.

Many regulators have over the last several years said

Lyft ( LYFT ) and rival Uber's ( UBER ) alleged misclassifications also

deprive drivers of other benefits including a minimum wage,

overtime pay and sick leave.

"There is no reason temporary or on-demand workers who

work flexible hours, or even minutes at a time, can't be treated

like other employees," New Jersey Labor Commissioner Robert

Asaro-Angelo said in a statement.