Postmates Courier Avoids Arbitration in California PAGA Suit

Postmates Inc. again failed to convince an appellate court in California that U.S Supreme Court precedent requires that a courier arbitrate misclassification claims brought on behalf of the state.

Former courier Wendy Santana sued the San Francisco-based food delivery service in 2018 under California’s Private Attorneys General Act, which gives individuals the right to sue to enforce state labor laws.

Postmates purposefully misclassified couriers as independent contractors rather than employees to minimize costs, Santana alleges. The misclassification deprived couriers of various statutory and regulatory rights including minimum wages, itemized wage statements, and timely pay, among others, Santana says.

Justice Elwood ...