The Court of Appeal for Ontario has ruled that Uber’s arbitration clause amounts to “illegal contracting out of an employment standard (if drivers are found to be employees) and unconscionable, therefore invalid.” As such, the court is allowing an Uber Eats driver to proceed with a $400-million class action lawsuit brought against Uber, which an Ontario judge stayed in January 2018 in favour of arbitration in the Netherlands. Uber is also required to reimburse the driver $20,000 in legal fees. (The Logic)

Talking point: The ruling comes on the heels of Uber losing an appeal in the U.K. last month over driver employment rights, and a California lawsuit claiming that the company is purposely delaying the arbitration requests of more than 12,000 drivers. One legal expert raised the spectre that today’s ruling could render all arbitration clauses in employment contracts moot. Uber said it is reviewing the ruling.