Home » US appeals court rules Uber drivers are subject to employment contract arbitration clauses

US appeals court rules Uber drivers are subject to employment contract arbitration clauses

by Derek Andrews
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The US Courtroom of Appeals for the Third Circuit ruled Wednesday that Uber drivers aren’t exempt from legal guidelines requiring personal arbitration of disputes.

The Federal Arbitration Act (FAA) permits federal courts to implement personal arbitration agreements generally present in employment contracts. These agreements are included in the usual contract Uber drivers comply with. Nevertheless, the FAA allows for exemptions for “contracts of employment of seamen, railroad staff, or some other class of employees engaged in overseas or interstate commerce.”

In a swimsuit towards Uber Applied sciences, Inc., a bunch of drivers working for Uber tried to argue that they fell into the “interstate commerce” employee exception as a result of Uber drivers sometimes carry passengers throughout state strains.

Federal District Decide Freda L. Wolfson initially ruled that the drivers weren’t lined by the interstate commerce exemption as Uber rides crossing state strains solely accounted for 2 p.c of all rides nationwide. Decide Wolfson additionally famous that Uber’s enterprise mannequin targeted on “native” transportation.

On enchantment, the Third Circuit once more dominated in favor of Uber, deciding that drivers didn’t qualify below the “interstate commerce” exception. The court docket reasoned that “Most Uber drivers have by no means made a single interstate journey. When Uber drivers do cross state strains, they achieve this solely by the way, as a part of Uber’s essentially native transportation enterprise.”

This opinion is in line with a 2021 ruling from the Ninth Circuit that reached the identical choice. It additionally bars Uber drivers from bringing class motion lawsuits.

Picture supply: jurist.org

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