Catherwood LibraryILR School

Uber and Lyft filed an appeal against a judge’s decision that ruled that the ridesharing companies had to pay thousands of dollars in back wages to employees under California state labor laws. Uber and Lyft claimed that the Federal Arbitration Act has power over California state laws, and the Federal Arbitration Act states that lawsuits that broadly seek wages for all employees are not allowed if employees are considered individuals regarding arbitration. The previous case ruled that Uber and Lyft wrongly classified workers as independent contractors instead of employees, and since ridesharing companies did not provide workers with paid sick leave or overtime pay, they had to properly compensate employees. The Supreme Court dismissed the appeal without comment, but previous Supreme Court decisions regarding employee arbitration have clashed with California labor laws.