Ride-hailing service Lyft has agreed to settle a proposed class action lawsuit in California filed by drivers seeking to be classified as employees, according to a court filing late on Tuesday.

The settlement, which would have to be approved by a San Francisco federal judge, provides for Lyft to pay $12.25 million, as well as give drivers notice if they are to be deactivated from the platform.

(Reporting by Dan Levine; Editing by Kenneth Maxwell)

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