A federal judge in California declined to compel ridesharing company Uber to reclassify its drivers as employees, rejecting plaintiffs’ claims that the alleged misclassification of workers adversely impacts the state of valuable tax dollars due to public assistance spending for low wage workers.
Plaintiffs filed the motion for injunction by asserting it would benefit the general public. In an 18-page ruling in Colopy v. Uber Technologies Inc., the U.S. District Court for the Northern District of California declined to treat the motion as a “public injunction,” finding the case’s primary plaintiff, is seeking a private injunction, not a public one. He noted the Ninth Circuit Court of Appeals tends to disfavor class-wide injunctions in such cases, particularly where no certification has been awarded to the class. Further, he pointed out that many of Uber’s drivers in California had signed arbitration agreements upon employment, meaning most of the drivers in question wouldn’t be entitled to such relief anyway.
Plaintiff employment attorney argued the technology firm impacts not only its own drivers but the industry as a whole, thus negatively affecting a large number of workers by depriving them of employment rights as spelled out in the state’s labor code. Defendant lawyers meanwhile argued an injunction wasn’t needed because drivers would still have the ability to obtain damages for statutory violations after the resolution of the case. A preliminary injunction that would force the company to switch up its entire business model should be considered “extraordinary,” they argued. Continue reading