Analysis

Gig Worker Suits On Thin Ice After Arbitration Pacts Upheld

Law360 (October 24, 2018, 7:20 PM EDT) -- A California federal judge’s determination that a DoorDash driver suing the app-based food delivery service must fight it out in individual arbitration suggests the dominoes are falling for collective wage-and-hour suits from so-called gig-economy workers after a recent Ninth Circuit ruling, experts say.

DoorDash Inc. successfully wielded the class waiver in its arbitration agreement to shield itself from driver Manuel Magana’s putative class action claiming the company misclassified drivers as independent contractors instead of employees.

Magana’s suit is an early casualty of the Ninth Circuit’s recent Sept. 25 O’Connor v. Uber ruling upholding the validity of Uber Technologies Inc.’s arbitration agreements and dismantling...

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