# Uber's Arbitration Policy Comes Back to Bite It in the Ass



## KevinH (Jul 13, 2014)

Over 12,000 Uber drivers found a way to weaponize the ridesharing platform's restrictive contract in what's possibly the funniest labor strategy of the year.

But first: a bit of background. One of the more onerous aspects of the gig economy is its propensity to include arbitration agreements in the terms of service-you know, the very long document no one really reads-governing the rights of its workers. These agreements prohibit workers from suing gig platforms in open court, generally giving the company greater leverage and saving it from public embarrassment. Sometimes arbitration is binding; in Uber's case, driver's can opt out-but only within 30 days of signing, and very few seem to realize they have the option.

Until an unfavorable U.S. Supreme Court ruling earlier this year, independent contractors often joined class-action lawsuits anyway, arguing (sometimes successfully) that they ought to have been classified as employees from the get-go. With that avenue of remuneration cut off, a group of 12,501 Uber drivers found a new option that hinges on the company's own terms of service. While arbitrating parties are responsible for paying for their own attorneys, the terms state that "in all cases where required by law, the Company [Uber] will pay the Arbitrator's and arbitration fees."

If today's petition in California's Northern District Court is accurate, those arbitration fees add up rather quickly.

A group of 12,501 drivers opted to take Uber at its word, individually bringing their cases up for arbitration, overwhelming the infrastructure that's meant to divide and conquer. "As of November 13, 2018, 12,501 demands have been filed with JAMS," the notice states. (JAMS refers to the arbitration service Uber uses for this purpose.) Continuing on, emphasis ours: "Of those 12,501 demands, in only 296 has Uber paid the initiating filing fees necessary for an arbitration to commence [...] only 47 have appointed arbitrators, and [...] *in only six instances has Uber paid the retainer fee of the arbitrator to allow the arbitration to move forward*." (Emphasis ours.)

While a JAMS representative was not immediately available for comment, the cause of the holdup is Uber itself, according to the notice:

Uber knows that its failure to pay the filing fees has prevented the arbitrations from commencing. Throughout this process, JAMS has repeatedly advised Uber that JAMS is "missing the NON-REFUNDABLE filing fee of $1,500 for each demand, made payable to JAMS." JAMS has also informed Uber that "until the Filing Fee is received we will be unable to proceed with the administration of these matters."

We have no reason to assume this fee would be different based on the nature of each case, so some back-of-the-envelope math indicates the filings alone would cost Uber-a company that already loses sickening amounts of money-over $18.7 million. We've reached out to Uber for comment and to learn if they have an estimate of what that number would be after attorney fees and other expenses.

https://gizmodo.com/ubers-arbitrati...&utm_source=gizmodo_email&utm_campaign=bottom


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## touberornottouber (Aug 12, 2016)

Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


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## KevinH (Jul 13, 2014)

touberornottouber said:


> Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


That would seem to me to be a reasonable argument. And this is just one law firm and the 12,000 is from Nov. 13th. I wonder how many more attorneys have filed. I wonder also if Shannon Lise-Riordan farmed out the arbitration work to this law firm so she could still handle the class action cases.


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## uberdriverfornow (Jan 10, 2016)

touberornottouber said:


> Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


absolutely


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## tohunt4me (Nov 23, 2015)

touberornottouber said:


> Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


Breach of Contract Renders Uber Contract Null & Void !


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## Clothahump (Mar 31, 2018)

JAM it to them!


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## Tnasty (Mar 23, 2016)

Just desserts being served on a cold plate?


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## Amsoil Uber Connect (Jan 14, 2015)

Funny how a settlement check of $78.52 came the same day as the new trade dress stickers. I feel as though there trying to pay me to put them on.  Hell I long forgotten and gave up that I would even get one.


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## observer (Dec 11, 2014)

KevinH said:


> That would seem to me to be a reasonable argument. And this is just one law firm and the 12,000 is from Nov. 13th. I wonder how many more attorneys have filed. I wonder also if Shannon Lise-Riordan farmed out the arbitration work to this law firm so she could still handle the class action cases.


She stated at one time that if the class action route was blocked she would file individual arbitrations.

There was a page on her website for individual drivers that missed the opt out time frame to sign up for individual arbitration.

https://uberpeople.net/threads/supr...on-suits-are-enforceable.261650/#post-3962261


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## njn (Jan 23, 2016)

12,501 default judgements coming up.


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## Michael - Cleveland (Jan 1, 2015)

tohunt4me said:


> Breach of Contract Renders Uber Contract Null & Void !


no, it doesn't render the contract null and void. There is a severability clause that is included which states that if one item in the contract is found to be in breach, it does not invalidate the entire contract. Standard boilerplate contract terms.



observer said:


> She stated at one time that if the class action route was blocked she would file individual arbitrations.
> 
> There was a page on her website for individual drivers that missed the opt out time frame to sign up for individual arbitration.
> 
> https://uberpeople.net/threads/supr...on-suits-are-enforceable.261650/#post-3962261


From firsthand experience I can state that is indeed the case. Recently, a friend of mine was deactivated over one of those complaints that a passenger files that is untrue just to get out of paying a fare. He was unable to sue Uber directly because of the arbitration clause. Instead, he filed a request for arbitration. He heard back from the arbitration folks who said they would be in touch. More time passed and nothing happened. Since Uber did not live up to the request for arbitration as specified in the contract, he was able to then file a small claims suit, for breach of contract, asking for lost wages (to the tune of the maximum allowed by small claims court, in this case, $6,000). The end result was that Uber hired a local attorney who asked him what he wanted in order to setttle the case. He told him he wanted to be reactivated. 2 days before the initial hearing date in court he was in fact reactivated. The key was to get Uber to fail in setting up arbitration, and put themselves in a position to be sued for breach of contract. Anyone who has a serious claim of being unjustly deactivated should take note of this strategy. It is pretty much the only way to get around the arbitration clause.


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## njn (Jan 23, 2016)

How long does one have to wait after requesting arbitration before suing?


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## KevinH (Jul 13, 2014)

Michael - Cleveland said:


> no, it doesn't render the contract null and void. There is a severability clause that is included which states that if one item in the contract is found to be in breach, it does not invalidate the entire contract. Standard boilerplate contract terms.
> 
> .....He told him he wanted to be reactivated. 2 days before the initial hearing date in court he was in fact reactivated. ...


He should have settled for lost wages and reactivation.


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## TwoFiddyMile (Mar 13, 2015)

$18.7 million. Uber can't afford that kinda scratch right now.


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## Amsoil Uber Connect (Jan 14, 2015)

It's too bad that one has to go to such lengths when a rider files a false report just to get a free ride.

In turn the rider should be charged for filing a false report.

I'd like to see an outline of the procedures / steps with address' of where to file for arbitration, and a time line / dates one must comply with to go through arbitration then onto small claims court.


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## YourFoodIsGettingCold (Nov 22, 2018)

They got "Jamm'd"


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## sadboy (Jul 15, 2016)

I say someone start a thread and see how many more want to signup


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## Amsoil Uber Connect (Jan 14, 2015)

TwoFiddyMile said:


> $18.7 million. Uber can't afford that kinda scratch right now.


Tough Poo Poo.

Money talks faster than a car can crash. ~ TBM ~ Blue. youtube it.


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## UberBastid (Oct 1, 2016)

touberornottouber said:


> Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


If they are not honoring the contract, then the contract has been breached.
Often, there are remedies for breach of either party to a contract, and I haven't read it. Depends on the terms IN the contract re: breach, but it may render the entire contract 'unenforceable'.



njn said:


> How long does one have to wait after requesting arbitration before suing?


Remedy for breach is in the contract.


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## Kurt Halfyard (Dec 13, 2017)




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## BurgerTiime (Jun 22, 2015)

Uber will be in litigation and pending lawsuits until it’s bankrupt


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## Fuzzyelvis (Dec 7, 2014)

Michael - Cleveland said:


> no, it doesn't render the contract null and void. There is a severability clause that is included which states that if one item in the contract is found to be in breach, it does not invalidate the entire contract. Standard boilerplate contract terms.
> 
> From firsthand experience I can state that is indeed the case. Recently, a friend of mine was deactivated over one of those complaints that a passenger files that is untrue just to get out of paying a fare. He was unable to sue Uber directly because of the arbitration clause. Instead, he filed a request for arbitration. He heard back from the arbitration folks who said they would be in touch. More time passed and nothing happened. Since Uber did not live up to the request for arbitration as specified in the contract, he was able to then file a small claims suit, for breach of contract, asking for lost wages (to the tune of the maximum allowed by small claims court, in this case, $6,000). The end result was that Uber hired a local attorney who asked him what he wanted in order to setttle the case. He told him he wanted to be reactivated. 2 days before the initial hearing date in court he was in fact reactivated. The key was to get Uber to fail in setting up arbitration, and put themselves in a position to be sued for breach of contract. Anyone who has a serious claim of being unjustly deactivated should take note of this strategy. It is pretty much the only way to get around the arbitration clause.


I'd take $6000 over reactivation any day.


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## DeafUberDriver (Dec 7, 2018)

I'm glad that right after I signed up and in the following days starting to work for Uber Eats (too damn impecunious to buy a used perfect-condition model post-2006 as required to start work for Uber/Lyft), I read the legal mumbo jumbo until arbitration caught my attention, and then I saw arbitration opt-out.

I emailed the opt-out arbitration to Uber, Inc. with the careful documentation to archive it in my email folder specific to Uber gig.

I do the same to other app-based gig companies like DoorDash (which required me to snail mail to opt out since they hate email opt-out to try to make it inconvenient for sign-ups, lol), Grub Hub and future app companies.

I've been through the attempted arbitration by slimy attorneys representing the slimy (arrogant, discriminatory, abusive capitalist exploiter scum) ex-employers in the past, and I flat-out refused through my lawyers. I get slight but decent settlements plus neutral job references to move forward.

Don't be lazy to skip the arbitration part in the agreement after signing up within the limited time frame. Someday app companies screw up that's the ground for individual or class-action lawsuit.

I won't be specific what happens in hypothetical screw-ups, but suffice it to say that app companies desperately need everyone who sign up to be lazy and skip the arbitration part with the first 30-day time frame so that they won't be in the hot legal water over some controversial matters in the future, at their fault, that could be very costly.

App companies love the arbitration for the hypothetical complaints that spawn as law suits, in order to pay MUCH less in settlement through the long, tortuous, dragged-out mediation process.


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## Mole (Mar 9, 2017)

touberornottouber said:


> Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


Or they are in breach of contract. Law suit double wammy.


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## KevinH (Jul 13, 2014)

The law firm for this filing is Lawson O'Brien LLP, in Kankakee Illinois. Maybe a year ago or so was a law firm advertising here at uberpreople.net to attract plaintiffs. Does anyone know who that law firm was? My recollection is that the advertising law firm was based in SoCal.

I am just wondering how many other claimants are out there trying to arbitrate. While 12K is a big number of claimants, the available pool is probably in excess of a million. Is this the tip of the iceberg or the product of other/several law firms involved in class action cases.


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## Wonkytonk (Jan 28, 2018)

TwoFiddyMile said:


> $18.7 million. Uber can't afford that kinda scratch right now.


It's worse than that actually it absolutely can't be seen to be taking on that many arbitration cases, or have that many in backlog, because really there's no way for a prospective investor to know what the potential liability is there. For starters, and at a minimum 18.7 million, that's not really chump change as a line item entry. And I'm willing to bet they've already got an estimate of the potential total loss and it's a number they absolutely don't want disclosed.


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## Disgusted Driver (Jan 9, 2015)

This is really cool. I need to do a little digging but if this is the same in both the 2015 and 2017 contacts they might have some hurting that could be sent their way.


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## UberBastid (Oct 1, 2016)

touberornottouber said:


> Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


It would depend on the terms in the contract.
There is a clause in there somewhere that deals with breach, and it differs if the breach is by the company or the 'partner'.
Usually, there is a clause that says something about "in the event of a breach or modification, or in case a part of the contract is set aside by law or decree, it does not affect the entire contract - only that part."
In a California Real Estate Purchase Agreement the arbitration and mediation clauses have to be separately initialed by both buyer and seller. But then, the seller doesn't have to accept the offer without those initials - and I have seen sellers insist on buyers accepting arbitration as a condition of acceptance. 
When representing the seller I advise that they not initial it.


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## dryverjohn (Jun 3, 2018)

12,502 FU UBER, pay my fees


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## Stevie The magic Unicorn (Apr 3, 2018)

TwoFiddyMile said:


> $18.7 million. Uber can't afford that kinda scratch right now.


That's just THE FILING FEE...

that's how much it will cost uber to file all those arbitrations and have the driver give up the exact second as the complaint is filed.

Plus you have to calculate their costs of arbitrating the lawsuits..

A quick google search says that the arbitration costs AT LEAST $1000 a day for the arbitrator, let's assume that each of those cases take only one day...

12,501 X 1,000 =

ANOTHER 12.5 million...

Now lets assume 12,000 drivers win $3,000 each

Guess what?

that's another 37.5 MILLION!

I'm at a cost of 48 million if each of the case is a 1 day victory for uber...

66 million for a $3,000 payout per driver,

And now we are looking at 68 million payout for just 12,501 drivers winning a modest payout each.


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## TwoFiddyMile (Mar 13, 2015)

Stevie The magic Unicorn said:


> That's just THE FILING FEE...
> 
> that's how much it will cost uber to file all those arbitrations and have the driver give up the exact second as the complaint is filed.
> 
> ...


Sweet.


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## melusine3 (Jun 20, 2016)

Amsoil Uber Connect said:


> It's to bad that one has to go to such lengths when a rider filings a false report just to get a free ride.
> 
> In turn the rider should be charged for filing a false report.
> 
> I'd like to see an outline of the procedures / steps with address' of where to file for arbitration, and a time line / dates one must comply with to go through arbitration then onto small claims court.


There absolutely should be recourse for the rider to seek $$ for those false claims.


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## iDriveuThrive (Sep 2, 2018)

I say we start our own people please sir delivery app... “Get an Uber, Oops I meant scoops” S coupe(scoop) it’ll entail rides for one and a friend in a sporty coupe... thoughts? Comments? opinions ? Lol


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## UberLaLa (Sep 6, 2015)

Travis so laughing these days...Dara so cringing.


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## Disgusted Driver (Jan 9, 2015)

It would be so cool to file an arbitration for every trip that you have a dispute, incorrect toll, cancellation fee not applied, wrong rate, .... Report in app, get stupid message from CSR's denying your claim, file arbitration. If nyone wants to see if they can find the rules, I'll see if we can get a web site up where you can make the filing easy. Wouldn't it be fun!


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## Amsoil Uber Connect (Jan 14, 2015)

melusine3 said:


> There absolutely should be recourse for the *rider* to seek $$ for those false claims.


Driver ?


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## UberBastid (Oct 1, 2016)

Disgusted Driver said:


> It would be so cool to file an arbitration for every trip that you have a dispute, incorrect toll, cancellation fee not applied, wrong rate, .... Report in app, get stupid message from CSR's denying your claim, file arbitration. If nyone wants to see if they can find the rules, I'll see if we can get a web site up where you can make the filing easy. Wouldn't it be fun!


It would sure bury them in paper -- a common tactic used by lawyers all the time.


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## Michael - Cleveland (Jan 1, 2015)

njn said:


> How long does one have to wait after requesting arbitration before suing?


It's best if you wait until you get the initial reply from the arbitration company and then don't hear anything within 2 weeks Ariat that gives you grounds for the breach of contract claim.


njn said:


> How long does one have to wait after requesting arbitration before suing?





Fuzzyelvis said:


> I'd take $6000 over reactivation any day.


If you've been deactivated for a while, there's no reason not to ask for both! If Uber won't settle, it might be an uphill battle to make the claim for lost wages.


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## Nonya busy (May 18, 2017)

touberornottouber said:


> Since they are not honoring the contract it might be argued that the mandatory arbitration provision should be thrown out entirely?


Often judges through out arbitration agreements anyway.



Michael - Cleveland said:


> It's best if you wait until you get the initial reply from the arbitration company and then don't hear anything within 2 weeks Ariat that gives you grounds for the breach of contract claim.
> 
> If you've been deactivated for a while, there's no reason not to ask for both! If Uber won't settle, it might be an uphill battle to make the claim for lost wages.


I read somewhere that at the rate uber's going, it would take them 10 years to finish the current arbitration workload.


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## Michael - Cleveland (Jan 1, 2015)

Nonya busy said:


> Often judges through out arbitration agreements anyway.


 Uber's arbitration agreement has already been upheld by the ninth circuit Federal Court of appeals. For it to be thrown out it would have to be a Supreme Court case.


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## Stevie The magic Unicorn (Apr 3, 2018)

Michael - Cleveland said:


> Uber's arbitration agreement has already been upheld by the ninth circuit Federal Court of appeals. For it to be thrown out it would have to be a Supreme Court case.


Yeah but they could file another appeal on the grounds that the arbitration proces isn't happening,



Nonya busy said:


> Often judges through out arbitration agreements anyway.
> 
> I read somewhere that at the rate uber's going, it would take them 10 years to finish the current arbitration workload.


Then by 2029 the new pile of arbitrations would take 50 or 100 years to clear...


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## KevinH (Jul 13, 2014)

KevinH said:


> The law firm for this filing is Lawson O'Brien LLP, in Kankakee Illinois. Maybe a year ago or so was a law firm advertising here at uberpreople.net to attract plaintiffs. Does anyone know who that law firm was? My recollection is that the advertising law firm was based in SoCal.
> 
> I am just wondering how many other claimants are out there trying to arbitrate. While 12K is a big number of claimants, the available pool is probably in excess of a million. Is this the tip of the iceberg or the product of other/several law firms involved in class action cases.


I was wrong about the law firm. I got Larson O'Brien of Los Angeles mixed up with Lawson O'Brien.


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## Stevie The magic Unicorn (Apr 3, 2018)

There's some legal precedent here that could sink uber..

Here's a court case that provides precedent for this situation.
_
Roach v. BM Motoring_
_
_
The end result

_HELD: Defendants non-payment of filing and arbitration fees amounted to a material breach of the DRA. Defendants are therefore precluded from enforcing the arbitration provision, and the case will proceed in the courts.
_
Basically if uber doesn't pay for arbitration and actually arbitrate the claims, the contract requiring arbitration could get thrown out due to a breach on uber's fault, and the multi billion dollar class action suits _could_ get put back on the table. Well there's legal precedent for it anyway... in _new jersey,_ hypothetically.

So it HAS happened before when a company didn't pay for the arbitration, which is what it looks like with uber.


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## TwoFiddyMile (Mar 13, 2015)

Interesting.


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## Stevie The magic Unicorn (Apr 3, 2018)

TwoFiddyMile said:


> Interesting.


It "appears" to be a relevant and similar situation to what's going on with with Uber.


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## TwoFiddyMile (Mar 13, 2015)

Stevie The magic Unicorn said:


> It "appears" to be a relevant and similar situation to what's going on with with Uber.


Agreed.


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## melusine3 (Jun 20, 2016)

Amsoil Uber Connect said:


> Driver ?


LOL yes!



BurgerTiime said:


> Uber will be in litigation and pending lawsuits until it's bankrupt


Good times...


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## Stevie The magic Unicorn (Apr 3, 2018)

But if true arbitration costs are in the 70 million range for just 5,000...

A class action could hit billions easy,


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## YouBeer (May 10, 2017)

KevinH said:


> Over 12,000 Uber drivers found a way to weaponize the ridesharing platform's restrictive contract in what's possibly the funniest labor strategy of the year.
> 
> But first: a bit of background. One of the more onerous aspects of the gig economy is its propensity to include arbitration agreements in the terms of service-you know, the very long document no one really reads-governing the rights of its workers. These agreements prohibit workers from suing gig platforms in open court, generally giving the company greater leverage and saving it from public embarrassment. Sometimes arbitration is binding; in Uber's case, driver's can opt out-but only within 30 days of signing, and very few seem to realize they have the option.
> 
> Until an unfavorable U.S. Supreme Court ruling earlier this year, independent contractors often joined class-action lawsuits anyway, arguing (sometimes successfully) that they ought to have been classified as employees from the get-go.


You lost me at 'classified as employees from the get-go'
Anyone who wants to be classified as an employee by one of these platforms or anything in this idiotic 'gig' economy is a ****ing moron and deserves every misfortune they get.
There should be a classification in psychology that anyone who wants to be classified as an 'employee' by any of these labor sharing platforms as legally mentally ******ed and denied a drivers license.

And anyone who needs an explanation is enough to classify them as a moron, so I will explain to the morons.
If you are classified as an employee that means that uber will be able to dictate to you what hours that person works, what their salary is (because there will be *NO* compensation based on the amount of rides you put in).
You will be forced to work 12 hour days and your lunch break will be according to when the platform says so *not* when you say so, and garaunteed that at least 75% of the readers here will not even be hired by uber or any other platform because there will be your typical idiotic corporate interview process asking you idiotic questions like 'if you were an animal what kind if animal would you be?' or 'what have you done in the last 5 years that you are most proud of' and no 'raising children' will *not* qualify as an answer.


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