Why Uber & Lyft Drivers Should NOT Sign the Class Action Suit

October 13, 2020

Why Uber & Lyft Drivers Should NOT Sign the Class Action Suit Post Image

We believe Uber and Lyft drivers are being exploited and underpaid by ridesharing companies. As these companies classify drivers as independent contractors, they are able to avoid paying drivers a minimum wage, providing benefits, or offering compensation for vehicle-related expenses.

Many drivers in California and around the country are rightfully fed up with these companies’ practices which many believe are exploitative. As a result, several class action lawsuits have been brought against Uber and Lyft over the past several years.

These class action suits are meant to hold Uber and Lyft accountable for the misclassification and underpayment of drivers. However, joining these class action suits may not be the right move for drivers.

Let’s take a look at why opting for binding arbitration may be a better option for Uber and Lyft drivers seeking compensation from these companies.

Uber & Lyft Class Action Lawsuits

Both Uber and Lyft rely on offloading major costs, such as mileage, vehicle maintenance, and insurance, onto their drivers. On top of this, they are able to underpay drivers and withhold benefits by misclassifying them as independent contractors rather than employees.

Earlier this year California’s Assembly Bill 5 went into effect, confirming stricter standards regarding classifying workers as independent contractors rather than employees.

Under these new standards, rideshare companies like Uber and Lyft may be forced to begin treating drivers as employees.

Why Drivers Should NOT Join Class Action Lawsuits

While class action lawsuits can sometimes be effective in holding companies accountable, there are a number of reasons to opt for arbitration instead:

Personal Circumstances: Class action lawsuits simply cannot account for each individual’s specific circumstances and grievances. Arbitration allows you to make a case based on your specific situation, which can increase your chances of reaching a settlement in a timely manner.

Time: Class actions can be drawn out over several years. For example, in the case of O’Connor, et al. v. Uber Technologies, Inc., a tentative settlement was reached in 2016; however, this settlement was rejected and it wasn’t until 2019 when a settlement agreement was finally reached. Binding arbitration can expedite this process and help you get your payout quickly.

Contracts: Uber has intentionally attempted to prevent drivers from joining class action suits by placing arbitration clauses in their contracts. By signing these contracts, Uber drivers contractually agree not to bring a class action suit against the company.

Payouts: Class action suits may include hundreds of thousands of other drivers. In these cases, payouts may be as little as a few hundred dollars per driver — perhaps less after legal costs. Class action lawsuits benefit the attorneys involved- individual lawsuits allow for personal service based on individual circumstance. Individual arbitration can increase your payout, and in some cases, can even pay for the costs to arbitrate.

Ultimately, if you believe you have a case against Uber or Lyft due to underpayment, misclassification, mistreatment, or any other grievance, individual binding arbitration may be the best way to get the compensation you deserve.

B|B Law Group is Here to Represent You

Do not get caught up in the long and drawn-out process of a class action lawsuit — let

our attorneys help with your individual case today!

Contact BB Law Group today to set up a free consultation and learn more about why arbitration is the best option for Uber and Lyft drivers seeking compensation due to exploitation.


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