Uber Gets the Upper Hand in Employment Battle as Court Slashes Class Action
The article, “Uber Gets the Upper Hand in Employment Battle as Court Slashes Class Action,” featured in the San Francisco Business Times, reported on Uber’s big win in an appeals court that could ease the burden of the company's numerous legal battles with its drivers.
Alden Parker weighed in on the appeal court’s decision.
"The effect is a little uncertain, but it's going to leave a much smaller class with Judge Chen, along with the PAGA claims, which ultimately can be very large," said Alden. "But what I think everyone conventionally believes is that this increases Uber’s leverage in renegotiating the settlement."
But diminished stakes in the class-action lawsuit could make a settlement proposal more likely to be approved. And it's also perceived as less friendly to drivers: "An arbitrator is going to have a much different approach than a jury or court," Alden said.
While the decision Wednesday may boost Uber's position in employment complaints, there can be extra complications to operating a "two-front war" in complicated employment claims, he added.
"While it’s ultimately better for Uber, it does create a second front for them in this battle," he said. "When there's a parallel claim in arbitration going on at the same time the court is litigating it, it doesn't always work out that well for an employer."
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