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Razak v. Uber Technologies, Inc.

951 F.3d 137 (2020)

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Razak v. Uber Technologies, Inc.

United States Court of Appeals for the Third Circuit
951 F.3d 137 (2020)

SC

Facts

Ali Razak and others (collectively, the drivers) (plaintiffs) were drivers for UberBLACK, a service owned by Uber Technologies, Inc. (Uber) (defendant). Generally, Uber permitted UberBLACK drivers to drive as much or as little as they wanted, with a few exceptions. Drivers were free to reject or accept ride opportunities, but if they rejected three rides in a row, Uber would place them offline. Relatedly, the agreements that the drivers signed with Uber stated that the frequency of the ride opportunities that were sent to the drivers was at Uber’s sole discretion. Additionally, UberBLACK drivers were required to maintain at least a 4.7-star rating in the Uber app. Uber also limited the number of consecutive hours that a driver could drive. The drivers sued Uber for allegedly violating state and federal minimum-wage and overtime laws. Those laws applied only to employees of a company. The drivers asserted that they were employees of Uber. Uber argued that the drivers were independent contractors. Uber asserted that the drivers were free to work for other rideshare companies, but the drivers argued that they could not pick up ride opportunities from any other company while they were online for Uber. Uber filed a motion for summary judgment, which the district court granted. The drivers appealed.

Rule of Law

Issue

Holding and Reasoning (Greenaway Jr., J.)

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