Supreme Court Puts the Brakes on Drivers’ Lawsuit Against Uber

The Supreme Court rejected a lawsuit about whether Uber drivers who work principally in a single state can rely on the Federal Arbitration Act (FAA) to opt out of mandatory arbitration agreements they signed.

The drivers said Uber miscategorized them as independent contractors instead of employees. As employees, they would have been entitled to full benefits under federal and state laws. The drivers contended that they were engaged in interstate commerce because they transport passengers to and from an airport.

The Supreme Court’s decision to not hear the case came after the U.S. Court of Appeals for the 9th Circuit in December 2023 vacated its prior ruling, reinstating Uber’s lawsuit challenging a California law that mandates that the company classify its workers as employees instead of independent contractors.

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