Postmates Loses in Federal Court, Stuck with Hundreds of Arbitrations

Postmates is learning the hard way that mandatory arbitration clauses go both ways, as an Illinois court has ruled against its attempt to consolidate hundreds of arbitrations into a single proceeding. As a result, the food delivery company is facing millions of dollars in arbitration fees as it is forced to defend each individual arbitration. The ruling concurs with similar rulings made against Postmates in California, where it was also ruled that it cannot consolidate these arbitrations, no matter how costly to itself. Continue reading “Postmates Loses in Federal Court, Stuck with Hundreds of Arbitrations”

Mandatory Arbitration Clause Backfires Against DoorDash

A mandatory arbitration clause placed into its employment contracts may have backfired for DoorDash, the on-demand food preparation and delivery service. DoorDash put the clause into the contract to avoid class and collective action suits by its employees, forcing the employees into private arbitration instead. However, as a result, DoorDash may now be financially responsible for the costs of more than 5,700 individual arbitrations, bound by that same arbitration clause. Continue reading “Mandatory Arbitration Clause Backfires Against DoorDash”

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