A San Francisco appellate panel Thursday said Uber and Lyft cannot compel arbitration in wage-and-hour litigation brought by California’s attorney general, three city attorneys and the state labor commissioner.

The ruling allows the state and local public attorneys to continue pursuing worker misclassification claims against the ride-hailing companies under California’s Unfair Competition Law in court even after voters in 2020 approved Proposition 22, an initiative allowing Uber and Lyft to continue treating their drivers as independent contractors.