Postmates Denied Bid to Arbitrate California Courier’s Wage Suit

Postmates Inc. will have to defend in court against claims that the delivery company withheld couriers’ tips and misclassified them as independent contractors after the California Supreme Court declined to take up the case Wednesday.

The California high court without comment declined to review an appeals court ruling rejecting the gig company’s arguments that workers’ claims on behalf of the state need to be arbitrated. Workers under the state’s Private Attorneys General Act can collect civil penalties for labor code violations as if they were attorneys general.

It’s the latest setback for third-party apps who have thus far unsuccessfully argued ...