According to Courthouse News, a federal judge indicated Thursday, May 30, he will likely advance a class action that could make Uber change the way it classifies drivers as independent contractors in California.
US District Judge Edward Chen refused to accept Uber’s argument that it cannot be sued by a competitor for allegedly misclassifying drivers as contractors because such conduct is not considered an antitrust violation.
“They don’t have to allege a specific antitrust act,” Chen said in court Thursday. “You can violate the spirit of the law or policy of the law.”
Los Angeles-based Diva Limousine sued Uber in September 2018, claiming the company’s flouting of state labor laws gives it an unfair advantage in the marketplace, allowing Uber to offer predatory prices that harm competition. By classifying workers as contractors, Uber avoids paying overtime wages, providing health insurance, or reimbursing job-related expenses, among other employee benefits.
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