Lyft Drivers Lose Arbitration Appeal in California Sick Pay Suit

A group of Lyft Inc. drivers in California are bound by their agreements to individually arbitrate sick leave and wage claims stemming from their alleged misclassification as independent contractors rather than employees, the Ninth Circuit ruled Wednesday.

The case turned on whether Lyft drivers fall within the Federal Arbitration Act’s exemption for transportation workers engaged in interstate commerce. But the appeals court said, in an unpublished opinion, that it had already decided that rideshare drivers don’t qualify for the exemption in its 2021 Capriole v. Uber Techs., Inc. decision.

“Capriole controls the outcome of” the drivers’ case, the ...