Calif. Judge Upholds State Law Penalizing Companies for Stalling on Arbitration Fees
Keller Lenkner secured another win in its arbitration battle on behalf of underpaid Postmates couriers. On Tuesday, a federal court rejected Postmates’s bid to strike down a California law penalizing companies that refuse to abide by their own arbitration agreements when employees or consumers demand arbitration.
The court ordered Postmates to arbitrate with our clients. It also imposed sanctions under the new law, known as California Senate Bill 707—including requiring Postmates to pay our clients’ attorneys’ fees and costs in each individual arbitration, regardless of who wins.
For more than two years, Postmates has refused to proceed with our clients’ individual arbitrations. “Six federal judges have now rejected Postmates’s cynical attempt to use arbitration to deny its workers justice,” Keller Lenkner Partner Warren Postman said. “This is a great result for our clients and an important precedent holding that large corporations cannot use forced arbitration to escape liability.”
Read more at Reuters.