A lawyer for the drivers vowedto keep fighting Uber's business model — common in the sharingeconomy — that classifies drivers as contractors instead ofemployees. (Photo: Diego M. Radzinschi/ALM)

Uber Technologies Inc. drivers suffered a major defeat in one ofthe gig economy's most closely watched labor fightswith a ruling barring hundreds of thousands of drivers fromsuing as a group for better pay andbenefits.

Tuesday's decision by a federal appeals court in San Franciscowasn't unexpected after the U.S Supreme Court in May bolstered the power of employers to forceworkers to use individual arbitration instead of class-actionlawsuits.

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