Domino’s Pizza (pixbay photo edit ice)
The Supreme Court of the United States today (Monday) gave a significant boost to Domino’s Pizza’s proposal to force the delivery drivers to file a wage claim in private arbitration rather than in court in a case from California that could have major consequences for gig economy companies.
The justices rejected a court ruling that allowed a group of drivers to pursue a class-action lawsuit seeking to recover work-related expenses because their local deliveries represented the last step in the flow of goods across state lines.
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A US law called the Federal Arbitration Act requires the enforcement of agreements workers sign with companies to arbitrate legal disputes, but it exempts transportation workers engaged in interstate commerce. More than half of private-sector workers in the U.S. have signed arbitration agreements, which typically prevent class-action lawsuits. Business groups have called arbitration a faster and more efficient alternative to suing in court. Workers’ advocates have said the process is skewed in favor of employers.
Three delivery drivers sued Domino’s in California state court in Santa Ana in 2020, accusing the company of violating various wage laws, and the case was later moved to federal court. Domino’s filed a motion to send the lawsuits to arbitration, citing agreements the drivers signed barring them from suing in court. A federal judge in Santa Ana denied the request, ruling that the drivers were exempt from arbitration because they were engaged in interstate commerce.
The 9th Circuit last year upheld the judge’s decision, finding that the drivers were integral in getting products that arrived outside of California to their final destinations. Dominos then appealed to the Supreme Court. A growing number of lawsuits have been filed in courts across the country, arguing that domestic delivery drivers qualify for the interstate commerce exemption because they handle goods from other countries such as various ingredients used to make Domino’s pizza and other prepared foods.
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