April 12 (Reuters) - The U.S. Supreme Court on Friday
gave a boost to a delivery truck driver's bid to expand the
universe of employees in interstate commerce who are exempted
from mandatory arbitration of legal disputes beyond workers at
transportation companies.
The justices, in a 9-0 ruling, threw out a lower court's
dismissal of proposed class action litigation by Neal
Bissonette, a delivery driver for LePage Bakeries Park Street, a
unit of Wonder Bread maker Flowers Foods ( FLO ). Bissonette has
said Flowers Foods ( FLO ) deprives drivers of wages by treating them as
independent contractors rather than employees.
Many companies require workers to sign arbitration
agreements and claim individual arbitration is quicker and more
efficient than resolving disputes in court. Critics of the
practice have said it prevents companies from being held
accountable for legal violations that affect large numbers of
workers.
The Federal Arbitration Act (FAA), dating to 1925, requires
arbitration agreements to be enforced according to their terms
but exempts employment contracts "of seamen, railroad employees,
and any other class of workers engaged in foreign or interstate
commerce."
The Supreme Court in a 2001 ruling said the exemption
applied only to transportation workers. Since then, appeals
courts have split over whether that means any worker who
transports goods or only those employed by companies that
provide transportation services.
The New York-based 2nd U.S. Circuit Court of Appeals in 2022
decided that the exemption did not apply to LePage's case
because the company's customers were purchasing bread and not
transportation services.
Bissonette accused LePage of misclassifying drivers who
delivered baked goods to retailers as independent contractors
and depriving them of minimum wage, overtime pay and other legal
protections.