Workers are often what keep Florida businesses up and running. As a result, company owners often bring in outside help and create contracts so that everyone involved understands his or her particular role. Still, some workers may feel that they are not classified correctly, like when considered independent contractors, and business litigation could result.
While many people know that Uber is a growing and successful company, they may not know that the business has been locked in a dispute with its drivers for six years. In 2013, two individuals filed suit against the company for classifying its drivers as independent contractors. They claimed that the classification was just a way for Uber to get out of paying minimum wage or providing benefits. The suit also gained class action status.
However, Uber had apparently included arbitration agreements in its contracts, which an appeals court later deemed enforceable. As a result, the number of drivers included in the case was reduced. Recently, Uber’s proposal of a $20 million settlement was approved and will apply to individuals who drove for the company between Aug. 16, 2019, and Feb. 28, 2019, in Massachusetts and California. It was also mentioned that the company will implement new policies relating to drivers.
As this case shows, business litigation may be avoided if companies include arbitration clauses in their contracts. Of course, that may not always be the case for many Florida companies. Therefore, it is wise for company owners to speak with their legal counsel regarding their available options for effectively handling any claims that come against their businesses.