Gig Companies Face ‘Existential Threat’ in Court Challenges

App-based companies like Uber and GrubHub have been targeted with lawsuits for allegedly misclassifying their drivers as independent contractors, who unlike employees aren’t entitled to overtime, workers compensation, and other benefits. But the arbitration agreements that the companies have used to keep those lawsuits out of court—and stave off potentially business-altering reclassifications—may not be on solid legal ground.

Transportation Workers: Drivers have been pressing arguments that they fall under the transportation worker exemption to the federal law that demands enforcement of arbitration agreements, Robert Iafolla reports today.

Interstate Commerce: Whether drivers can keep their lawsuits in court could turn on ...