Postmates must individually arbitrate with about 4,800 couriers who allege they are misclassified as independent contractors instead of employees under California labor law, and the company must pay the couriers’ attorneys’ fees, a federal judge in Los Angeles ruled.
The gig company, which operates a mobile delivery application, filed the action against more than 10,200 couriers who submitted arbitration demands in early 2020 under its Fleet Agreement, which workers generally have to accept to start work on the platform.
Postmates sought to block the application of California Senate Bill 707, which imposes monetary sanctions for failing to pay arbitration fees.
