In a legal rollercoaster that could impact millions of Uber drivers, the U.S. Supreme Court made a startling decision on Monday, refusing to delve into the perplexing question of whether Uber drivers are considered interstate transportation workers, and consequently, exempt from federal arbitration law.
Arbitration Law Exempts Uber Drivers : Hesitation at the Pinnacle
The apex court dismissed a petition for certiorari from Jaswinder Singh, a determined driver aiming to overturn the Third Circuit ruling. This ruling asserted that Uber drivers, according to Section 1 of the Federal Arbitration Act, do not fall under the category of transportation workers.
Section 1’s Intricate Web
Section 1 of the Federal Arbitration Act carves out exceptions for “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” Singh’s legal quest sought to clarify a murky landscape where federal circuit courts have conflicting analyses on the eligibility of workers for this exemption.
Arbitration Law Exempts Uber Drivers : Uber’s Silent Cruise
Uber, the rideshare giant, remained silent in response to Singh’s petition. The company’s stance, presented in a Third Circuit brief, argued against Section 1’s application merely due to “interstate trips that occur by happenstance of geography” or independent airport trips “unconnected to any integrated chain of interstate or foreign transportation.”
The Origin: A Class Action Dispute
This legal turbulence originated from a 2016 proposed class action by Singh. He alleged that Uber, by misclassifying drivers as independent contractors, failed to compensate for overtime and reimburse business expenses. Independent contractors often grapple with the absence of employee protections, including minimum wage and overtime pay.
Echoes from the Southwest Airlines Case
In a legal echo from June 2022, the Supreme Court previously ruled on Section 1 in Southwest Airlines Co. v. Saxon. In that instance, the justices determined the carveout covered airline cargo loaders. However, ambiguity persists regarding its applicability to ride-hail and last-mile delivery drivers.
Arbitration Law Exempts Uber Drivers:Uber’s Legal Odyssey
While Uber has not made an appearance at the high court, the company was represented in the Third Circuit by legal heavyweights Samuel Eckman, Theane Evangelis, and Blaine H. Evanson of Gibson Dunn & Crutcher LLP, along with Paul C. Lantis and William J. Simmons of Littler Mendelson PC.
The Road Ahead
Singh’s legal journey is far from over. Represented by Matthew D. Miller and Justin L. Swidler of Swartz Swidler LLC, alongside Shannon Liss-Riordan of Lichten & Liss-Riordan PC, the fate of millions of Uber drivers navigating the perplexing waters of federal arbitration law remains uncertain.
