Uber Drivers Must Individually Arbitrate Illinois Wage Claims

Uber Technologies Inc. convinced a federal judge to enforce individual arbitration agreements against Illinois-based drivers who claim they lost out on wages because they were misclassified as independent contractors under state law.

The drivers sought to avoid arbitration by arguing that they qualified for the Federal Arbitration Act’s exemption for transportation workers. But Judge Martha M. Pacold rejected this argument and granted Uber’s motion to compel on Wednesday during a telephonic hearing.

Federal courts are generally split on whether gig economy drivers fall within the scope of the FAA’s transportation worker exemption. The First and Ninth circuits have found that ...