By Daniel Wiessner
(Reuters) – The U.S. Supreme Court declined on Monday to hear a challenge by Uber and Lyft to lawsuits by the state of California on behalf of drivers who signed agreements to keep legal disputes with the ride-hailing companies out of court in a legal fight over their status as contractors.
The justices turned away appeals by the two companies of a lower court’s ruling that let the Democratic-led state’s attorney general and labor commissioner pursue claims that Uber and Lyft owe money to drivers who were misclassified as independent contractors rather than employees.
The companies have argued that federal law bars states from suing on behalf of anyone who signed agreements to bring legal disputes in private arbitration rather than court. That includes more than 60 million U.S. workers and virtually any consumer who joins a subscription service, accepts a company’s terms of service or registers a product.
California filed separate lawsuits against the companies in 2020. A state appeals court in 2023 ruled against the companies in their challenge to the lawsuits. The California Supreme Court subsequently declined to hear their appeals.