Uber Fails to Move California Driver’s PAGA Suit to Arbitration

Uber Technologies Inc. again failed to convince a California appellate court Friday that drivers suing the rideshare company on behalf of the state must first arbitrate the question of whether they are employees.

The state’s Private Attorneys General Act allows “aggrieved employees” to sue their employers for labor code violations. State courts have held that mandatory arbitration agreements workers signed can be bypassed to keep their claims in court, and have so far rejected attempts by Uber and others to let an arbitrator decide the threshold issue of whether the workers are employees or contractors.

Whether driver Damaris Rosales qualifies ...