07:58 AM EDT, 09/19/2025 (MT Newswires) -- (Updates with Lyft's ( LYFT ) response in the fifth and sixth paragraphs.)

Lyft ( LYFT ) has paid about $19.4 million to the New Jersey Department of Labor and Workforce Development following an audit that the ride-hailing company misclassified more than 100,000 drivers as independent contractors, the agency said Thursday.

The misclassification deprived the drivers of "crucial safety-net benefits," according to the agency.

The audit was carried out when Lyft ( LYFT ) drivers filed for unemployment insurance and disability benefits, showing that the company "impeded" them from accessing benefits and protections, the agency said.

"New Jersey will continue to take strong action to stop misclassification and hold violators accountable," Attorney General Matthew Platkin said.

While Lyft ( LYFT ) disagrees with the agency's findings, it will not pursue further challenges to the assessment, the company said in a statement e-mailed to MT Newswires Friday.

"We continue to believe drivers are properly classified as independent contractors under New Jersey law, something drivers on Lyft ( LYFT ) say they overwhelmingly support as it provides them the freedom and flexibility they value most," the company said.

Lyft ( LYFT ) shares were up 1.3% in recent premarket activity Friday.