In a proposed employment misclassification and common employer class action brought on behalf of delivery workers, the court stayed the claims of workers bound by arbitration agreements and dismissed certification.
Applying the stay framework under the Arbitration Act, 1991 and the unconscionability analysis from the Supreme Court’s arbitration jurisprudence, the court held the arbitration clauses were enforceable and not contrary to public policy.
The court further held that the common employer theory against the retailer in relation to workers hired by numerous third-party logistics companies was legally untenable and unsuitable for certification because the cause of action, common issues, and preferable procedure criteria were not met.
Although the direct-employer claims of certain drivers might otherwise have supported limited certification, the proceeding was ultimately stayed in part and the certification motion dismissed.
