A court ruling against ride-sharing company Uber Technologies could be a big deal for workers.
The California Supreme Court ruled that UberEats driver Eric Adolf can still sue the company on behalf of a group of workers even though he signed an agreement to file employment-related claims in private arbitration. Adolph filed a case against UberEats in 2019 saying drivers had been misclassified as contractors rather than employees, and that the company still had to reimburse business expenses.
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A court ruling against ride-sharing company Uber Technologies could be a big deal for workers.
The California Supreme Court ruled that UberEats driver Eric Adolf can still sue the company on behalf of a group of workers even though he signed an agreement to file employment-related claims in private arbitration. Adolph filed a case against UberEats in 2019 saying drivers had been misclassified as contractors rather than employees, and that the company still had to reimburse business expenses.
The court’s decision is significant not only because it could give drivers more rights to claim expenses, but also because it could open up food delivery companies and participation in new rounds of large-scale class-action lawsuits.
Uber’s lawyers alleged that this ruling contradicts a previous US Supreme Court ruling and violates the Federal Arbitration Act. Thean Evangelis, an attorney for the company, said in a statement emailed to: Barron.
Lyft and DoorDash did not respond to requests for comment.
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The ruling did not affect shares of Uber (UBER), which rose 4.4% on Tuesday. Lyft (Lyft) stock rose 1.4%, while DoorDash (DASH) stock declined slightly.
Write to Brian Swint at [email protected]
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