Instacart Latest to Lose Bid to Arbitrate California Wage Claims

Grocery delivery service Instacart became the latest app-based company to lose a challenge to the California Supreme Court’s interpretation of a unique labor law Thursday, when a state appellate court refused to force a former employee’s claims into arbitration.

Shopper Christian Malaspina sued the company under California’s Private Attorneys General Act, which deputizes aggrieved employees to seek civil penalties for Labor Code violations on behalf of the state. Instacart violated worker rights through its compensation and payroll policies, Malaspina said.

California courts have uniformly held that claims filed under PAGA aren’t subject to mandatory arbitration agreements.

The issue is controlled ...