Uber updated its driver
agreements Friday, in a move seen by some as an end-run around a federal
class-action lawsuit challenging the ride-hailing company's labor practices.
The updated agreement, which began popping up on drivers' apps today, would
require them to resolve disputes with Uber through binding arbitration, which
could preclude them from participating in the class action suit.
"MOST NEVER READ
THE AGREEMENT... "
Shannon Liss-Riordan,
the attorney representing drivers in the California case, filed an emergency
motion to block the new agreements from going into effect, according to
BuzzFeed. A spokesperson for Uber said, "We believe strongly that our
agreements are valid, but we are making some changes and clarifications to
remove uncertainty for drivers and for us as we work through our multiple
appeals on this issue."
At issue is
California's Private Attorney General Act, which allows average citizens to
bring claims as a representative of the state. Uber's arbitration agreement
includes both a waiver for class actions as well as a waiver for PAGA actions.
Judge Edward Chen, who is overseeing the class-action lawsuit, found that the
entire agreement is unenforceable because the subset PAGA waiver is
unenforceable, and the two cannot be "severed". Uber says the new
language indicates the PAGA waiver is "severable" from the overall
agreement.
An Uber spokesperson
confirms that the company does not intend to enforce the new arbitration
provisions for drivers who are part of any certified class, like O'Connor vs.
Uber.
But drivers are
concerned the rideshare company is trying to prevent them from filing future
legal challenges. On Friday afternoon, drivers began discussing the news on
online forums and on social media, with many saying they plan to opt out from
the agreement. "A driver who's not opted out can't seek resolution of any
dispute in a court of law," one Uber driver, who posts as chi1cabby on
UberPeople.net, tells The Verge. "Not even a small claims court. And
obviously they can't join a class action suit as well."
Chi1cabby says the
problem is not every driver participates in online discussions with their
peers, and many may choose to agree to the new provisions without knowing what
it means for their legal options.
"Drivers have to
agree to the full agreement, including the arbitration provisions, on their
phones before they can login to the app and work," he says. "Most
never read the agreement, have no idea about the arbitration provisions. They
have to be aware of the provision in order to send an email to opt-out."
The case before Judge
Edward Chen of the US Northern District of California is expected to go to
trial in June 2016. The case seeks to reclassify Uber drivers as employees
rather than independent contractors. Uber argues that would destroy its
business model.
"I SUSPECT MANY
WON'T KNOW HOW OR WILL FEAR RETRIBUTION FROM UBER... "
This week, Chen ruled
to expand the scope of damages and participants in the case. Previously the
case only covered drivers who didn't accept arbitration agreements when they
first signed up to drive for Uber. On Wednesday, Chen said that would only
apply to a "tiny fraction" of California's 160,000 Uber drivers, and
ruled to expand the case to drivers who had agreed to Uber's arbitration
provision.
Many see Uber's updated
driver agreement as a direct response to Chen's ruling. Meanwhile, the
ride-hailing company is lobbying to include language in ride-sharing
legislation currently pending in several states to statutorily define drivers
as independent contractors.
"I've already
fielded dozens of requests from drivers who don't understand what they're
reading or don't have the time to read through a 21 page PDF," says Harry
Campbell, an Uber driver who blogs as The Rideshare Guy. "I think most
drivers probably will want to opt out of the agreement but I suspect many won't
know how or will fear retribution from Uber for doing so, although the latter
is illegal."
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