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September 8, 2016 02:00 pm

Uber Drivers Are Subject To Individual Arbitration, Says Court

An anonymous reader quotes a report from CNET: Uber won a courtroom victory on Wednesday when an appeals court ruled that drivers are subject to individual arbitration in a lawsuit over background checks, a ruling that might help the ride-hailing company fend off another costly class action lawsuit filed by its drivers. While the Ninth U.S. Circuit Court of Appeals found that agreements signed by two former drivers for the service over background checks "clearly and unmistakably" require legal disputes be settled by a private arbiter, the reasoning may be applied to another class action lawsuit filed by drivers over the company's employment classifications. Uber agreed to settle that lawsuit earlier this year -- an agreement that was rejected by a federal judge last month. Arbitration is a method frequently used by companies for resolving legal conflicts outside of the court system. However, critics say that binding arbitration clauses give corporations an unfair advantage over employees and consumers who do not have the resources to challenge companies individually.

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