Ninth Circuit Rules For Uber in Misclassification Lawsuit Featured

  25 September 2018

In a major victory for Uber Technologies, Inc., the Ninth Circuit Court of Appeal reversed a lower court’s ruling that certified a class of current and former drivers, and ruled that the claims against Uber for misclassifying their drivers as independent contractors must be filed individually as opposed to a class action.

Current and former drivers alleged that they were misclassified as independent contractors, and thereby denied reimbursements, tips, and other protections required for employees. The drivers had filed a class action against Uber, and the lower court certified the class, holding that an arbitration agreement the drivers had signed, which included a class waiver, was unenforceable. Uber then appealed. The Ninth Circuit held that “As the class certification by the district court was premised on the district court’s determination that the arbitration agreements unenforceable, the class certification must also be reversed.”  This decision highlights the importance of employers including mandatory arbitration agreements (which have a class waiver) as part of their workplace policies. Read the decision here.