Uber Drivers Must Arbitrate Pay Suit, Third Circuit Rules (1)

Uber Technologies Inc. drivers are bound by mandatory arbitration agreements in employment disputes because they don’t fall under a federal exemption for transportation workers engaged in foreign or interstate commerce, a federal appeals court found.

The US Court of Appeals for the Third Circuit ruled Wednesday that a pair of proposed classes of drivers for the ride-hailing giant can’t invoke the Federal Arbitration Act’s carveout to avoid arbitrating their complaints against Uber. The drivers accused the company of misclassifying them as independent contractors rather than employees entitled to full benefits under federal and state wage and hour laws.

The drivers ...