Target’s Shipt Loses Bid to Arbitrate Worker Status Lawsuit

Target Corp.‘s grocery delivery platform Shipt Inc. cannot force a worker to arbitrate a lawsuit she filed on behalf of the state of California that alleges the company incorrectly classified employees as independent contractors, a state appellate court said Thursday.

Jade Green sued Shipt in 2020 under the Private Attorneys General Act, which enables aggrieved employees in California to sue for labor code violations on behalf of the state’s Labor and Workforce Development Agency. Green alleged Shipt misclassified grocery delivery workers as independent contractors rather than employees, and that various wage and hour violations stemmed from that misclassification.

The ...