The US Supreme Court took up a wage lawsuit against Domino’s Pizza LLC by ingredient delivery drivers seeking to clarify which workers are engaged in interstate commerce and thus exempt from mandatory arbitration, solely for the purpose of sending the case back to the lower court.
The justices’ decision Monday vacated a December 2021 ruling from the US Court of Appeals for the Ninth Circuit finding that the drivers qualify for a federal law carveout from arbitration agreements because they deliver out-of-state products from Domino’s centralized California depot to franchise stores across the state.
The appeals court should take a second look at the case in light of the Supreme Court’s recent Southwest Airlines Co. v. Saxon decision, the justices said.
This case is playing out amid a surge of litigation over transportation workers’ attempts to avoid mandatory arbitration of their employment disputes.
The appeals court misinterpreted the Federal Arbitration Act, which generally encourages enforcement of agreements to take claims to arbitration rather than to court, Domino’s argued in its petition. Section 1 of the FAA exempts “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce” from arbitration.
The pizza chain giant had urged the high court to determine what class of transportation workers...
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