In a case involving the scope of a federal arbitration law’s carveout for transportation workers, the U.S. Court of Appeals for the Third Circuit held Wednesday that Uber drivers must resolve worker misclassification claims out of court.

The Philadelphia-based court said an exemption for transportation workers in the Federal Arbitration Act—which favors arbitration over litigation to resolve claims—does not apply to Uber drivers because they generally do not engage in interstate transport.

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