Gig Economy Plaintiffs Will Test-Drive New SCOTUS Ruling Against Arbitration
Plaintiffs and management-side lawyers will assess whether and how the U.S. Supreme Court's "New Prime" ruling can be applied to on-demand transportation workers.
February 12, 2019 at 02:32 PM
5 minute read
The original version of this story was published on National Law Journal
Gig economy companies such as Uber, GrubHub and Lyft will face renewed arguments against the arbitration agreements their drivers are forced to sign, as plaintiffs lawyers test the scope of a new U.S. Supreme Court ruling to keep cases in the courtroom.
The Supreme Court's unanimous decision in January in New Prime v. Oliveira clarified that an exemption for “transportation workers” in the Federal Arbitration Act applies to both independent contractors and employees who engage in interstate commerce.
The decision marked a rare strike against arbitration by the Supreme Court, which has issued rulings in recent years bolstering the power of employers and companies to stop workers and consumers from taking disputes to court.
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