Dive Brief:
- There seems to be no end to courtroom decisions involving Uber. The latest: An appeals court in California handed down a decision in the company's favor related to how it conducts background checks, according to USA Today.
- In this case, a pair or Uber drivers lost access to the Uber app after Uber received negative information from their consumer credit reports as part of its routine background check on drivers.
- Both drivers alleged that Uber violated the Fair Credit Reporting Act, and one of them also alleged that the company misclassified him and other employees as independent contractors. On the other hand, both signed signed agreements that they would to submit to arbitration to resolve most disputes with the company. The court said they need to face arbitration in the case.
Dive Insight:
Most importantly, as in any arbitration case, if the arbiter decides the drivers must abide by the arbitration clause, it would mean the vast majority of Uber drivers would have to deal with Uber individually and could not bring a group case against the company over its background check philosophy.
Gig economy employers can try to follow the Uber legal battles, including one overturning its recent settlement with drivers regarding reimbursement for expenses and another one also related to background checks, though a different aspect of the process. The only advice for HR executives who are trying to keep score? Keep following those Uber lawsuits.
