A group of drivers brought a lawsuit against Uber Technologies, Inc., alleging that the company violated the Fair Labor Standards Act and Illinois wage laws by misclassifying them as independent contractors. The defendant moved the district court to compel the drivers to arbitrate their claims under the Federal Arbitration Act and Illinois Uniform Arbitration Act, citing provisions contained in their driver agreements. The district court granted the request as to three of four drivers. The fourth driver pursued a claim in state court where the state court concluded that the arbitration provisions were ineffectual because that driver had exercised his right to opt out of the applicable arbitration agreement. The district court then concluded that the doctrine of issue preclusion blocked defendant from relitigating the effect of the arbitration agreement as to the fourth driver. Defendant appealed and the Seventh Circuit affirmed. (KIRSCH and KOLAR, concurring)
Federal 7th Circuit Court
Civil Court
Arbitration Agreeements