Uber Wins Stay in California Driver Misclassification Dispute

California’s lawsuit alleging Uber Technologies Inc. misclassified drivers as independent contractors is on hold with a trial court judge pressing pause Monday while the Court of Appeal resolves the issue of whether workers and the state must arbitrate claims.

The San Francisco Superior Court in September refused to order into arbitration claims by the city attorneys of Los Angeles, San Francisco, and San Diego and the state Labor Commissioner’s office, a ruling that Uber is appealing.

Uber argues the claims should be forced into arbitration, while the government parties contend they’re enforcing their prosecutorial authority and aren’t parties to ...