https://www.politico.com/news/2024/10/07/supreme-court-denies-uber-lyft-appeal-of-california-labor-lawsuits-00182715

Labor

Supreme Court denies Uber, Lyft appeal of California labor lawsuits

The ride-hailing companies had sought to overturn a lower-court ruling giving drivers back wages.

By AL EX NI EVES 1 0 / 0 7 / 2 0 2 4 0 2 : 2 6 PM EDT  

 The Supreme Court on Monday declined to weigh in on an appeal brought by Uber and Lyft against lawsuits filed by California officials over claims the company misclassified its workers. What happened: The justices denied the ride-hailing giants’ petition without offering comments on the decision.

Uber and Lyft argued that lawsuits filed in 2020 by California Attorney General Rob Bonta and Labor Commissioner Lilia Garcia-Brower seeking back payments for withheld minimum wage, overtime and other benefits are invalid because the workers in question signed arbitration agreements with the companies. Top Stories from POLITICO The California Supreme Court in January also refused to hear an appeal of a lower court decision that found state officials aren’t bound by arbitration agreements they didn’t sign. Background: California Appeals Court Justice Jon Streeter ruled last September that California officials were enforcing state labor laws and not suing on behalf of workers. That means the arbitration agreements drivers signed are irrelevant to the state’s authority. “The public officials who brought these actions do not derive their authority from individual drivers but from their independent statutory authority to bring civil enforcement actions,” Streeter wrote in his opinion. The lawsuits were filed prior to voters approving Proposition 22 in November 2020, which gives the ride-hailing companies the ability to keep classifying drivers as independent contractors.

What’s next: The decision means Uber and Lyft will have to pay back wages to tens of thousands of drivers unless a settlement is reached with California