Postmates Fails to Send California Wage Claims to Arbitration

A group of Postmates Inc. couriers who allege the delivery platform withheld wages and took tips can proceed on claims filed on behalf of the state of California despite a strict arbitration agreement, a state appellate court said Tuesday.

The lawsuit, filed in November 2017, sought to represent a class of drivers who were allegedly misclassified as independent contractors instead of employees. The drivers also sought civil penalties for underpaid wages in a representative claim filed under the Private Attorneys General Act, which deputizes aggrieved employees to sue for labor code violations on behalf of the state.

A trial court ...