A federal judge has ruled that Uber can send a suit in which drivers alleged that the company misclassified them to arbitration, according to a report in Law 360. On Tuesday, U.S. District Judge Aileen M. Cannon ruled that because the drivers rarely engaged in interstate commerce, they were not exempt from federal arbitration requirements under a carveout for interstate transportation workers.
Judge Cannon said that the drivers for Uber Technologies Inc. engaged in interstate commerce in only about 2% of their trips, and that is not enough for the workers to qualify for the carveout under Section 1 of the Federal Arbitration Act. Section 1 exempts from arbitration contracts of employment for seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.
