Administrative Law Judge M. Victor Bushin issued the decision on July 20, 2026, citing a pattern of non-compliance that spanned several years. Since 2021, legal counsel for Nahvi attempted to secure essential business and employment records through subpoenas and multiple court orders. Despite a March 2025 determination by a court-appointed discovery referee that the company’s delays were unreasonable, Lyft continued to withhold documentation regarding the driver's classification.
Lyft Sanctioned for Malicious Delay in Driver Injury Case
A California Workers' Compensation Appeals Board judge has ordered Lyft to pay $66,735 in sanctions after finding the company acted with malice by willfully obstructing discovery. The ruling follows years of litigation involving Mark Nahvi, a driver who sustained permanent, catastrophic injuries during a 2018 passenger attack.
At the heart of the dispute is Lyft's insistence that Nahvi operated as an independent contractor, a designation that would disqualify him from the workers' compensation benefits he has sought since his 2018 injury. This classification battle predates the 2020 passage of Proposition 22, the ballot measure championed by gig-economy companies to bypass traditional employment standards. Judge Bushin’s award includes $64,735 in attorney's fees alongside a $2,000 penalty for the company's persistent refusal to honor judicial mandates.
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