The U.S. Supreme Court has thrown out a lower court decision that let three delivery drivers pursue a class-action lawsuit against the pizza chain, reported Reuters.
A lower court ruling had let the group of drivers pursue a class-action lawsuit seeking to recoup work-related expenses because their local deliveries represented the final step in the flow of goods over state lines.
However, the Supreme Court justices ordered the San Francisco-based 9th U.S. Circuit Court of Appeals to reconsider the case in light of the Supreme Court’s ruling on Southwest Airlines in June. The high court ruled that the airline could not force an overtime pay lawsuit by baggage handlers into arbitration because the workers routinely load cargo onto planes that cross state lines.
The FAA requires the enforcement of agreements that workers sign with companies to bring legal disputes in arbitration. However, it exempts transportation workers engaged in interstate commerce.
More than half of private-sector U.S. employees have signed arbitration agreements, which typically also bar class-action claims, according to the report. However, while business groups have called arbitration a quicker and more efficient alternative to suing in court, workers’ advocates find that the process favors employers.
In 2020, the three drivers sued Domino's in California state court in Santa Ana, accusing the Ann Arbor, MI-based company of violating various wage laws. The case was subsequently transferred to federal...
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