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Uber's updated driver agreement may limit class-action suit

Uber altered a clause that could keep some drivers from participating in a lawsuit against the company.

Flickr/noeltock

Uber is embroiled in a class-action lawsuit in California, with some drivers fighting to be recognized as employees rather than contracted workers. This week, Judge Edward Chen ruled that the arbitration clause in the company's driver agreement was illegal, potentially allowing most California Uber drivers to participate in the class-action lawsuit. But on Friday, Uber updated its driver agreement in a way that might bar these drivers from hopping aboard. Shannon Liss-Riordan, the plaintiffs' attorney, fears that Uber is attempting to circumvent Judge Chen's existing ruling, Los Angeles Times reports.

"We believe this is an illegal attempt by Uber to usurp the court's role now in overseeing the process of who is included in the class," Liss-Riordan told the site. She's filed a motion asking the court to block Uber from enforcing the new agreement. Judge Chen should hear that on Thursday, Buzzfeed reports.

The updated driver agreement reads as follows:

IMPORTANT: This Arbitration Provision will require you to resolve any claim that you may have against the Company or Uber on an individual basis, except as provided below, pursuant to the terms of the Agreement unless you choose to opt out of the Arbitration Provision. Except as provided below, this provision will preclude you from bringing any class, collective, or representative action (other than actions under the Private Attorneys General Act of 2004 ("PAGA"), California Labor Code § 2698 et seq. ("PAGA")) against the Company or Uber, and also precludes you from participating in or recovering relief under any current or future class, collective, or representative (non-PAGA) action brought against the Company or Uber by someone else.

Judge Chen previously ruled the arbitration section was illegal because it didn't include exemptions for PAGA. Now, it does. Uber says it won't enforce the new agreement for drivers participating in an existing class-action lawsuit, though the updated language suggests the company could, in fact, do just that.

"We believe strongly that our agreements are valid, but we are making some changes and clarifications to remove uncertainty for drivers and for us as we work through our multiple appeals on this issue," an Uber spokesperson said in a statement.

LA Times reports that Uber informed Judge Chen about its plans to update the arbitration agreement and he approved, according to a spokesperson.

[Image credit: Flickr/noeltock]