Locke Lord New York Partner Richard Reibstein Quoted by Law360 on State Attorneys General Avoiding Arbitration and Bringing Wage and Hour Proceedings Against Gig Companies

Richard Reibstein, a New York Partner in Locke Lord’s Labor and Employment Practice and co-head of the Firm’s Independent Contractor Compliance and Misclassification Practice, was quoted by Law360 on state attorneys general in at least three states avoiding arbitration clauses in independent contractor agreements and bringing legal proceedings against gig companies for alleged wage and hour violations, recovering hundreds of millions of dollars. In class action lawsuits, courts often compel arbitration of workers’ claims because of arbitration agreements, while actions by state attorneys general avoid arbitration because they are not covered by the arbitration provisions.

Reibstein discussed how arbitration pacts fall short. “Arbitration agreements are not panaceas,” he said. “All they do is offer an alternative to court litigation that can be useful to minimize the likelihood of class actions.”