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Zum Must Litigate Driver Status in California Labor Lawsuit

March 1, 2021, 9:02 PM

Rideshare platform Zum Services Inc. lost its bid to force drivers who sued the company on behalf of California’s labor agency to arbitrate the question of whether they are “aggrieved employees” as required by the state’s unique Private Attorneys General Law, according to a state appeals court ruling published Monday.

The PAGA deputizes California workers to allege for the state that an employer has violated state labor laws. The California Supreme Court has held that PAGA claims lie completely outside the coverage of the Federal Arbitration Act because they are disputes between an employer and the state.

Zum drivers sued ...