Judge Nixes Uber Arbitration Pacts, Expands Driver Class

By Beth Winegarner (December 9, 2015, 5:57 PM EST) -- A California federal judge ruled Wednesday that Uber Technologies Inc.'s 2014 and 2015 arbitration agreements are unenforceable, allowing thousands of Uber drivers who signed the agreements to join a class action accusing the company of misclassifying them as independent contractors.

In the latest legal blow to Uber's business model, U.S District Judge Edward Chen certified a subclass of drivers who signed the agreements, saying they're unenforceable as a matter of public policy. Recent rulings have determined that Private Attorney General Act waivers in arbitration agreements are unenforceable and Judge Chen found that the PAGA waiver in Uber's 2014 and 2015 arbitration agreements...

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