Law Times – Judge Stays $400-Million Class Action Against Uber

An Ontario judge has stayed a proposed class action lawsuit brought against Uber by its own drivers in favour of arbitration in the Netherlands.

In Heller v. Uber Technologies, the plaintiff, David Heller, was seeking $400 million in damages for the class as well as a declaration that Uber violated the Employment Standards Act by failing to pay benefits to the putative class members. Heller entered into a service agreement, which included an arbitration clause, when he began working as an Uber driver in 2016.

The clause held that any disputes or conflicts would be resolved by arbitration in the Netherlands, where Uber’s legal team is primarily located.

The plaintiffs are now appealing Perell’s decision.

Lior Samfiru is a Toronto Employment Lawyer and partner at Samfiru Tumarkin LLP, and one of the lawyers representing the plaintiff.  He says the decision, if ultimately upheld, could have “disastrous” implications for employees and could “change the face of employment law.”

He says the decision could mean that employees might not have a way to enforce their rights under the ESA when employers include such arbitration clauses in agreements.

Read more of Lior’s comments in the Law Times article.