The Supreme Court has declined to hear an appeal brought by Uber and Lyft against lawsuits filed by California officials over claims the companies misclassified their workers. Specifically, 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. Notably, California Appeals Court Justice Jon Streeter ruled last September that California officials were enforcing state labor laws and not suing on behalf of workers, meaning that the arbitration agreements drivers signed are irrelevant to the state’s authority.
The California Supreme Court then refused to hear an appeal of the California Appeals Court decision that found state officials aren’t bound by arbitration agreements they didn’t sign. The Supreme Court’s decision to not hear arguments in this case means Uber and Lyft will have to pay back wages to tens of thousands of drivers unless a settlement is reached with California officials.