New State Laws Support Uber's Business Model

A spokesperson for said, "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".

Buried deep at the end of the 21-page document-which spans approximately 4,500 words-is an opt-out procedure that gives drivers some recourse to keep control of their destiny. Uber said it will produce a transcript of that interchange soon.

Chen, the federal judge overseeing the Uber misclassification suit, first certified a class of drivers in September.

Drawing on the same logic as the labor commission, Liss-Riordan has argued that since Uber can fire its drivers, compel them to accept a certain portion of rides, and enforce workplace standards, it effectively operates as an employer under California law. On Friday afternoon, drivers began discussing the news on online forums and on social media, with many saying they plan to opt out from the agreement.

U.S. District Court Judge Edward Chen declared Uber's arbitration clause was unenforceable. "Not even a small claims court".

This kind of action is uncommon in class actions, Scherwin said, but it does happen.

Chi1cabby says the problem is not every driver participates in online discussions with their peers, and many may choose to agree to the new provisions without knowing what it means for their legal options. "He ruled that the [Private Attorney General Act] waiver is illegal as a violation of public policy (which it is, in light of recent California Supreme Court and Ninth Circuit rulings), and he ruled that he could not sever the illegal provision without rewriting the agreement, which courts are not allowed to do".

With the new drivers agreement, Uber is trying "to be clever by redrafting its agreement in a way that it can content that the challenged provision is severable", Liss-Riordan said.

In a statement emailed to VICE News, Uber said it's obvious that drivers do not work for the company, but are independent business people.

The case will go to trial on June 20. Now, as Uber fights against stricter regulations coming from city hall, the company has launched a new safety feature that makes taking a ride significantly more transparent. On Wednesday, Chen said that would only apply to a "tiny fraction" of California's 160,000 Uber drivers, and ruled to expand the case to drivers who had agreed to Uber's arbitration provision.

The on-demand transportation company on Friday issued a new driver partner agreement to Uber drivers containing a revised arbitration clause that would exclude anyone who signs it from participating in current or future class-action lawsuits.