Description: The Impact Litigation Journal provides commentary and analysis about legal issues relating to class actions and other representative litigation in the areas of consumer and employment law.
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Who decides whether a putative class of gig-economy workers like drivers for Uber Technologies, Inc. (“Uber”) are misclassified as independent contractors rather than employees? In Capriole v. Uber Technologies, Inc. , No. 20-16030 (9th Cir. Aug. 2, 2021) (slip op. available here ), the Ninth Circuit examined an exemption under the Federal Arbitration Act (“FAA”) for transportation workers and whether a court or an arbitrator would decide such a dispute for Uber drivers whose contracts with Uber contain man
This case originated in Massachusetts. Uber classifies all of its Massachusetts drivers as independent contractors, not employees. Slip op. at 7. This means they are required to pay business expenses, such as the cost of maintaining their vehicles and gas, and have no guaranteed minimum wage or overtime premiums. When the plaintiffs signed up to become Uber drivers, they had agreed to its technology services agreement, which contained a mandatory arbitration agreement governed by the FAA that had a class ac
Uber moved to compel arbitration and transfer the case to the District Court for the Northern District of California pursuant to a forum selection clause in Uber’s driver agreements. Slip op. at 11-12. The Massachusetts district court granted the motion to transfer. Meanwhile, the plaintiffs amended their complaint to add new claims, additional named plaintiffs, and the allegation that “Capriole has driven passengers across state lines while driving for Uber.” Id. at 12. The plaintiffs appealed after the di
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