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Judge grants Uber's request to toss class action suit over driver tips

By Paul Bradley Carr , written on September 8, 2014

From The News Desk

A federal judge in San Francisco has ruled that Uber drivers cannot mount a class action suit against the company over tips paid by riders.

The drivers had claimed that Uber had concealed from riders the fact that it doesn't hand over the full amount of the tip automatically added to ever journey. For its part, as I wrote last week, Uber argued that it was riders, not passengers, who were misled by the policy.

This past Thursday, reports Courthouse News, judge U.S. District Judge Edward Chen ruled that the suit could not continue as the California statutes cited by drivers in the suit could not be applied to Uber drivers working elsewhere.

Chen cited a recent ruling by his colleague in the Northern District, Judge Vincent Chhabria, who found California law does not apply to people working exclusively out-of-state. "Even if the choice of law provision were intended to confer upon out-of-state drivers a cause of action for violation of California's wage and hour laws, it could not do so," Chhabria wrote. "An employee cannot create by contract a cause of action that California law does not provide."
Here's the full ruling...

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