Uber Can’t Compel Arbitration of PAGA Claim According to California Court
Friday, April 30, 2021
On April 21, 2021, the Second Appellate District of the Court of Appeal of the State of California filed an unpublished opinion rejecting Uber’s attempt to enforce an arbitration provision that waived an employee’s right to bring a claim under the California Private Attorneys General Act (PAGA). This statute authorizes “aggrieved employees” to file lawsuits to recover civil penalties from employers for violations of the California labor code.
The plaintiff, Jonathan Gregg, filed a lawsuit against Uber in August 2018, alleging that the ride-share company “willfully misclassified him as an independent contractor rather than an employee,” which led to violations of California Wage Order 9-2001 and several other Labor Code provisions that triggered his rights under PAGA. In response to the suit, Uber filed a motion to compel arbitration under the Arbitration Provision of the “Technology Services Agreement,” which the plaintiff was required to sign before becoming a driver. The Los Angeles Superior Court denied Uber’s motion in December 2019, which led to the present appeal.