Postmates Must Explain Why It Won’t Arbitrate or Face Contempt (1)

Postmates Inc. must explain to a federal court in California why the online delivery service company shouldn’t be held in contempt for refusing to enter into arbitration with more than 5,200 drivers who filed individual claims.

The company has until Dec. 11 to file a written response, that should not be more than 15 pages long, to explain why it refused to comply with an order to compel arbitration in the claims filed by couriers, said U.S. District Judge Saundra Brown Armstrong on Dec. 3. Postmates could face sanctions, Armstrong ruled.

The U.S. District Court for the Northern District of ...