Supreme Court Rules 9-0 That Lower Court Should Have Put Delivery Drivers’ Lawsuit on Hold

The Supreme Court ruled unanimously on May 16 that if a federal court determines that a lawsuit involves an arbitrable dispute, and a litigant requests a stay of the proceeding pending arbitration, a federal arbitration law requires the court to grant the stay.

Companies often prefer arbitration to the courts, saying the process resolves cases with greater speed and reduced expense. Some consumer advocates prefer the courts because, in their view, the judicial system provides private citizens and consumers with more options and is less likely to side with the companies being sued.

The petitioners are Wendy Smith, Michelle Martinez, and Kenneth Turner, who are current and former delivery drivers for co-respondent IntelliQuick Delivery Inc., a company active in the U.S. Southwest.

The drivers sued in Arizona state court, alleging violations of federal and state employment laws. The drivers claimed the company misclassified them as independent contractors, failed to pay minimum and overtime wages, and failed to give them paid sick leave.

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