Winns v. Postmates Inc.
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Postmates’ website enables customers to arrange for deliveries from local businesses. Beginning in March 2017, prospective couriers seeking to offer their delivery services were presented with Postmates’ Fleet Agreement when logging on for the first time. The Agreement directs a prospective courier to review a mutual arbitration provision that applies to “any and all claims between the [p]arties,” including claims related to a courier’s classification as an independent contractor, delivery fees received by a courier, and state and local wage and hour laws. It includes a “Representative Action Waiver.” There is an opt-out provision: “Arbitration is not a mandatory condition of [the courier’s] contractual relationship with Postmates.
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Plaintiffs acknowledged the Fleet Agreement. Postmates did not receive opt-out forms for any of them. In December 2017, Plaintiffs filed a putative class and representative action, alleging Labor Code violations. The trial court denied Postmates’s petition to compel arbitration of Private Attorney General Act claims for civil penalties, citing the California Supreme Court’s 2017 “Iskanian” holding that representative action waivers were unenforceable. The court of appeal affirmed, rejecting Postmates’ arguments that Iskanian was abrogated by subsequent U.S. Supreme Court decisions. Iskanian expressly established that the Federal Arbitration Act does not preempt state law on the enforceability of PAGA waivers.
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