Key Points
July 17 (Reuters) - Uber Technologies Inc (UBER.N) must face a California lawsuit claiming it should have covered UberEats drivers' work-related expenses, the state's top court said on Monday, in what could be a major blow to companies in the largest U.S. state and a win for labor advocates...
The California Supreme Court in a unanimous ruling said UberEats driver Erik Adolph did not give up his right under state law to sue on behalf of a large group of workers even though he signed an agreement to bring his own work-related legal claims in private arbitration...
The decision likely undermines the significance of a 2022 U.S. Supreme Court ruling involving Viking River Cruises that said companies could force individual PAGA claims into arbitration, and could mean that California employers will face more large-scale lawsuits...
"We are considering our appellate options," she said.. Michael Rubin, who represents Adolph, said the ruling could spur companies to reconsider forcing workers' claims into arbitration if large-scale PAGA lawsuits can still proceed in court..
Groups including the U.S. Chamber of Commerce, the country's largest business lobby, filed briefs in Monday's case warning the California Supreme Court that a ruling against Uber could encourage workers to file meritless lawsuits and pressure companies to settle them...
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