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The Merits and Pitfalls of Mass Arbitration for Uber and Uber Drivers
The Rise of Mass Arbitration In recent years, U.S. companies have increasingly included mandatory arbitration clauses in their contracts, meaning any disputes between consumers or employees and the company must be resolved through arbitration. As it commonly costs between $300 and $400 for complainants to initiate an arbitration claim and because these clauses also commonly prevent customers and employees from participating in class action proceedings, the move to arbitration was…
Workers Seek Sanctions on Turf Farm
Workers of Briggs Traditional Turf Farm (“Briggs” or the “Farm”) have sought sanctions against their employer for misleading employees who could opt into a lawsuit against the Farm. The second amended complaint, filed on December 23, 2021, in the United States District Court for the Western District of Missouri, alleges that Briggs illegally and discriminately withheld overtime pay from workers with H-2A visas by purposely misrepresenting them as agricultural workers.…
Joint Task Force on Misclassification of Employees – Pennsylvania Department of Labor & Industry
Pennsylvania’s Joint Task Force on Misclassification of Employees (“Task Force”) held its fourth meeting of the year on April 22, 2022, the first in-person meeting since its assembly in January 2021. The Task Force is a bipartisan group of nominated volunteers representing business, labor, and government seeking to publicize a comprehensive understanding of worker misclassification and its consequences. This meeting occurred a month after the Task Force released its Annual Report, which…
California Uber Drivers Settle Misclassification Claims for $8.4 Million
On February 17, 2022, a class of 1,322 California drivers announced an $8.43 million settlement (the “Settlement”) with Uber Technologies, Inc. (“Uber”) to resolve claims in James v. Uber. The Settlement, which comes in the wake of a $20 million initial settlement between Uber and a class of 15,000 California and Massachusetts Uber drivers in O’Connor v. Uber, compensates drivers for damages incurred after O’Connor and before the enactment of Proposition 22, a period…
Uber to Arbitrate Misclassification Claims in Illinois
On October 29, 2020, a class action lawsuit was filed in the United States District Court for the Northern District of Illinois accusing popular ride sharing platform Uber Technologies, Inc. (“Uber” or “Defendant”), of misclassifying its drivers as independent contractors instead of employees under federal wage laws. The action alleges that because drivers were misclassified as independent contractors, they missed out on benefits and protections granted to employees such as minimum wage…
California Truck Drivers Reach $9.5 Million Settlement in Misclassification Suit
In California and across the country, truck drivers are at risk of being misclassified as independent contractors. This has negative implications for drivers’ taxes and workplace protections, as independent contractors are not subject to the same workplace regulations or protections as employees. For workers in labor-intensive jobs, such as truck drivers, this can cause serious issues. But truck drivers in California have recently made strides forward in advocating for their employment status.…
Wal-Mart Overtime Suit Denied Summary Judgment
On January 24, 2022, U.S. District Judge Madeline Cox Arleo denied Wal-Mart’s motion for partial summary judgement in Sundel Quiles, et al. v. Wal-Mart. The action arises from allegations that Wal-Mart misclassified the Plaintiffs as overtime-exempt employees in violation of the New Jersey State Wage and Hour Law (“NJWHL”) and New York Labor Law (“NYLL”). Wal-Mart sought to limit the claims that Plaintiffs could bring to trial by arguing that even if Wal-Mart…
NCPA Files Misclassification Claim on behalf of California Student-Athletes
On February 8, 2022, the National College Players Association (“NCPA”) filed an unfair labor practice charge with the National Labor Relations Board (“NLRB”) alleging that the University of California, Los Angeles (“UCLA”), the University of Southern California (“USC”) (together, the “Universities”), the Pac-12 Conference, and the National Collegiate Athletics Association (“NCAA”) misclassified Division I football and basketball players as student-athletes rather than employees of the university, denying them their rights under the…
Matco Tools Misclassification Suit Reaches $15.8 Million Settlement
On January 19, 2022, John Fleming (“Plaintiff”) requested preliminary approval of a $15,846,423 settlement (the “Settlement”) on behalf of himself and a class of other current and former distributors of Matco Tools Corporation (“Matco Tools” or “Defendant”). The Settlement resolves allegations that Plaintiff and other class members were misclassified as independent contractors instead of employees of Matco Tools, resulting in unreimbursed business expenses, unlawful deductions, unpaid overtime compensation, missed meal and rest…
Ruling Forces Ridesharing Services to Reclassify Drivers as Employees in California
The future of ridesharing services, such as Uber and Lyft, in California are very much in jeopardy as on Thursday, a California appeals court stated that the two companies must reclassify their drivers as employees rather than independent contractors. The decision, which reaffirms a lower court’s ruling, gives Uber and Lyft 30 days to comply with the ruling, assuming they do not appeal the decision. For years, ridesharing services have…
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