From CNET: Uber has been dealt another setback in its legal battle over how its drivers are classified.
After granting class-action status in September to a lawsuit challenging how Uber classifies its drivers, a federal judge on Wednesday ruled that many more drivers in California can join lawsuit, even if they had previously accepted the company's arbitration clause.
The lawsuit, which accused the ride-hailing service of misclassifying its drivers as independent contractors rather than employees, could have a huge impact on Uber's business model and also create a ripple effect throughout the entire on-demand economy.
US District Court Judge Edward Chen ruled that the arbitration clause that drivers agreed to when they signed up to drive was unenforceable, allowing the vast majority of Uber's 160,000 drivers in California to join the case. Chen had previously limited the class certification to drivers hired before June 2014, when the arbitration clause was enacted.
Chen also ruled that drivers are entitled to pursue reimbursement for vehicle- and phone-related expenses.
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