The U.S. Supreme Court recently vacated a lower court's ruling in a wage lawsuit against Domino's Pizza by ingredient delivery drivers.
On Oct. 17, the U.S. Supreme Court sent the case back to a federal appeals court for reconsideration in light of new precedent. The case, Domino's Pizza LLC v. Carmona, could further define which workers are engaged in interstate commerce and thus exempt from mandatory arbitration under the Federal Arbitration Act (FAA).
The 9th U.S. Circuit Court of Appeals previously ruled that the factor critical in determining whether the exemption applies is the nature of the business for which workers performed their activities, not the nature of the item transported in interstate commerce. It found that the delivery of interstate goods was integral to the delivery drivers' job functions and that Domino's could not mandate arbitration.
The drivers argued before the Supreme Court that the 9th Circuit's decision is in line with the new precedent of Southwest Airlines v. Saxon, a similar case involving airport baggage handlers. But that case didn't fully address the question of which transportation workers qualify for the exemption, so the Supreme Court sent the case back to the appeals court for more clarity, instead of deciding the case itself.
"The contours of the FAA's exemption for transportation workers remains unclear," said Noah Finkel, an attorney with Seyfarth in Chicago. "If it ultimately is given a broad reading, it means a large number of...
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