The California Supreme Court dealt a significant blow to Uber Technologies Inc. and potentially other companies in the state, as it ruled that UberEats drivers can pursue a lawsuit claiming the company should have covered their work-related expenses. This ruling marks a win for labor advocates and may lead to more large-scale lawsuits against California employers.
The court’s unanimous decision on the UberEats labor lawsuit stated that UberEats driver Erik Adolph retained his right under state law to sue on behalf of a large group of workers, even though he had signed an agreement to resolve his own work-related legal claims through private arbitration.
Adolph sued Uber in 2019, alleging that the company had misclassified UberEats drivers as independent contractors instead of employees, who are entitled to reimbursement for work expenses under California labor laws.
At the heart of the ruling is the unique California law known as the Private Attorney General Act (PAGA), which permits workers to sue for employment law violations on behalf of the state and receive a portion of the awarded money, while the rest goes to the state to fund labor law enforcement agencies.
The court clarified that PAGA does not prohibit workers from pursuing individual claims through arbitration while simultaneously litigating large-scale claims in court.
The decision appears to undermine the significance of a 2022 U.S. Supreme Court ruling involving Viking River Cruises, which allowed companies to force individual PAGA claims into arbitration. This latest ruling suggests that California employers could now face an increase in large-scale lawsuits.
Attention UberEats drivers! Are you facing unfair labor practices and seeking justice for misclassification and unpaid work-related expenses? Don’t navigate this legal battle alone! Our dedicated team at Labor Law Advocates is here to support you every step of the way.
Take action today and stand up for your rights as an UberEats driver. Reach out to Labor Law Advocates in California and let us fight for your rights, ensuring you receive the fair treatment and compensation you deserve. Consultation is free.