In a recently published decision, the Washington Court of Appeals declared class action waivers in certain employment agreements unenforceable.
In Oakley v. Domino’s Pizza, LLC, plaintiff Oakley brought claims under the Washington Minimum Wage Act (WMWA) and wage rebate act. Oakley was a delivery driver for Domino’s supply chain (not a pizza delivery driver), where Oakley delivered raw materials to franchise locations, and some routes required he cross state lines. When he began working for Domino’s, he signed an agreement to arbitrate his claims under the Federal Arbitration Act (FAA) and also waived his right to participate in class actions. Despite this, he filed a class action lawsuit asserting wage and hour claims on his own behalf and on behalf of a class of drivers.
Two primary legal issues determined whether Domino’s request to force the claim into arbitration would succeed: (1) Whether the agreement was governed by State or Federal law; and (2) if State law applied, whether the class action waiver was enforceable.
As to the first issue, the Court found that the Federal Arbitration Act (FAA), which specifically exempts “seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce” did not apply to this contract, because of the exemption. The Court first acknowledged that “a narrow interpretation [of the exemption] is appropriate” but then relied on 9th Circuit precedent finding even local drivers were “engaged in” interstate...
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