Gig Worker Arbitration Stymied by California’s Private AG Law

Uber Technologies Inc. and other California gig companies have found little success in sending a unique issue involving worker misclassification claims to private arbitration, leaving them exposed to significant potential liability in court under a law that allows individuals to sue on behalf of the state.

The golden state’s courts have so far rejected arguments that gig workers must first let an arbitrator decide if they are contractors or employees before they are allowed to proceed with Private Attorneys General Act lawsuits alleging labor violations. The classification issue is important because only employees are entitled to wage protections and other ...