Uber Bid to Arbitrate PAGA Suit Denied by California High Court

The California Supreme Court denied app-based companies a foothold to challenge a unique state labor law Wednesday when it refused to consider Uber Technologies Inc.'s argument that a driver must arbitrate employee status before suing the rideshare platform on behalf of the state.

California appellate courts have uniformly rejected arguments made by Uber and others that gig workers must first let an arbitrator decide if they are contractors or employees, before proceeding with claims filed under the Private Attorneys General Act, which deputizes “aggrieved employees” to sue on behalf of the state.

In 2014, the California Supreme Court held ...