Uber Gets Another Win in Court, Forcing More Drivers Into Arbitration

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Uber Contractor Misclassification Lawsuit Overview:

• Who: Uber drivers fighting in a class action lawsuit to be classified as employees instead of contractors will have to arbitrate their claims out of court.
• Why: A federal judge ruled the drivers do not fit the interstate commerce transportation exemption under the Federal Arbitration Act
• Where: The lawsuit was playing out in federal court in New York before plaintiffs were ordered to arbitration.

In another decision against drivers fighting to get employment status from Uber, a New York federal judge has ruled that Uber drivers must arbitrate their claims out of court.

On Friday, U.S. District Judge Valerie E. Caproni sided with Uber by sending a class action lawsuit filed by Plaintiffs Sancak Davarci and Joseph Chambers to arbitration, instead of allowing it to be heard in court. 

The two drivers were trying to get their case to go to trial, arguing that Uber has misclassified them as independent contractors rather than employees, thus dodging paying all sorts of required benefits like a minimum wage and the right to unionize. 

Caproni’s ruling Friday came due to the fact the judge ruled the drivers do not fit the interstate commerce transportation exemption from arbitration under the Federal Arbitration Act because they don’t typically do interstate work, Law360 reports.

Through providing data showing most Uber drivers work within state, the ride-hailing giant managed to convince a judge to force the drivers into arbitration. 

A nationwide battle is raging over whether Uber and Lyft can continue to classify their drivers as independent contractors. Also on Friday, a California court ruled that Prop 22, a ballot measure that exempted gig workers from state labor law, was unconstitutional.

And in a recent ruling on a case filed by Massachusetts Uber drivers, the Ninth Circuit Court of Appeals said that Uber drivers’ pay and other claims will need to be worked out on an individual basis through arbitration and not a class action proceeding. 

In that case, in 2019, Uber and Lyft were hit with twin lawsuits in federal court seeking employment status for Massachusetts drivers along with sick pay and other benefits. The class action lawsuit lodged against Uber was transferred to California federal court.  

In 2020, Uber drivers submitted affidavits stating that, by failing to classify them as employees, the company forced them to work during the coronavirus pandemic — even if they were symptomatic. 

The Uber driver pay class action lawsuit was tossed to arbitration by a California federal judge in May 2020, despite claims that the drivers were exempt. The drivers appealed, but a recent ruling by the Ninth Circuit will likely see them out of the courtroom for the time being.  

Arbitration is different from a class action lawsuit, which takes place in court. Instead, arbitration is a private process that forces individual rather than group claims, according to the American Bar Association. 

While a supposedly “neutral” arbitrator oversees the process, consumer advocates worry that powerful corporations, such as Uber, have the upper hand against individuals, such as their drivers, although Amazon made waves when it axed its arbitration clause recently.

Meanwhile, as the use of delivery services skyrocketed during the pandemic, ride hailing and delivery drivers have mounted class action lawsuits involving DoorDash and Amazon alleging the companies purposefully misclassify workers as independent contractors to avoid paying minimum wage, sick benefits, and overtime.  

Do you work for a ride hailing service? What do you think of the Uber drivers pay class action lawsuit? Tell us about it in the comment section below!

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