Lyft has settled a long-running class action brought by drivers who argued they were misclassified as independent contractors, agreeing to pay $272.5 million.

The case addressed the central question in the gig economy: whether a platform’s control over fares, routes and acceptance rates amounts to employment in law as well as in practice.

The settlement is significant both for the sum and for the precedent, having resisted the argument that the terms of driver agreements settled the matter contractually.

Critics argue the figure is inadequate relative to what workers are owed. The underlying accounting question — what drivers actually earn once vehicle costs and unpaid time are accounted for — remains unresolved and is likely to be litigated again.