Lyft Drivers Must Arbitrate Claims Despite Federal Carveout

Lyft Inc. drivers must arbitrate under Delaware law a proposed class action accusing the company of contract breaches involving a workers’ compensation fund, according to a New York federal judge who previously ruled that the workers are exempt from a federal arbitration law.

The drivers can’t keep their claims in court because of arbitration agreements they signed, even though they’re covered by a Federal Arbitration Act exemption for transportation workers engaged in interstate commerce, said U.S. District Court Judge Alison Nathan of the Southern District of New York on Aug. 6.

She concluded that the contracts they signed said Delaware ...