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Uber must face lawsuit about work expenses: California Supreme Court



Independent contractors classification

In 2021, UberEats overhauled its business model and changed its contracts with delivery drivers amid growing pressure over the status of workers. The change would make it easier for the company to classify riders and drivers as independent contractors, rather than employees – an issue that has been challenged in court on several occasions.

Under the Private Attorney General Act, or PAGA, workers can sue for employment law violations on behalf of the state and keep one-quarter of any money they win. The rest goes to the state to fund an agency that enforces labor laws.

Nothing in that law prevents workers from pursuing claims on their own behalf in arbitration while separately litigating large-scale claims in court, the court said, according to the Reuters report published on Yahoo! Finance.

More than half of private sector, nonunion U.S. workers are required to sign arbitration agreements as a condition of employment. And the agreements typically bar them from filing or participating in traditional class action lawsuits, according to the report.

In 2020 however, the Fair Work Commission in Australia ruled that drivers who deliver food through online service UberEats are to be considered independent contractors – not employees of the company – owing to the flexibility of their work arrangement.

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