Uber Loses Appeal to Deny Class Action Lawsuit Filing

Uber Class Action Lawsuit Moves Forward

Uber’s request to immediately appeal an order approving class certification in a lawsuit filed by its own contract drivers was denied by a U.S. appeals court on Tuesday.

The 9th U.S. Circuit Court of Appeals in San Francisco, is set to hear the lawsuit which was filed by drivers who contend they are employees and entitled to reimbursement for expenses, including gas and vehicle maintenance. Uber drivers currently pay those costs themselves.

Earlier in the year, U.S. District Judge Edward Chen in San Francisco said California drivers could sue as a group on the question of whether they are employees or contractors. There are also question surrounding how Uber hands out tips to drivers due to the split commission structure of the service.

“We look forward to presenting the facts about how drivers use Uber with complete flexibility and control over their work to a jury,” Uber attorney Theodore Boutrous said in a statement.

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Shannon Liss-Riordan, an attorney representing the plaintiff drivers, said they are pleased with the 9th Circuit’s decision.

Uber drivers who have worked for the service since May 2014 must specifically opt out of an arbitration agreement in order to sue the company.

Only a small fraction of a potential 160,000 Uber drivers are eligible for the class action lawsuit.

You can follow the case at Douglas O’Connor et al v. Uber Technologies Inc, U.S. District Court, Northern District of California, No. 13-3826.

Written by Peter Mondrose

Peter Mondrose

Peter Mondrose is the Editor-In-Chief at BusinessPundit. He received his degree in Economics in 1998 and a second degree in Journalism in 2004. He has served as a financial adviser, market trader, and freelance journalist for the last 11 years. When he's not investigating market conditions and reporting on workplace news, he can be found traveling with his wife, dog, and laptop. He can be reached at OnlineDegree.com.