Amazon Flex Drivers' Mass Arbitration Delayed by Supreme Court Rulings

An eight-year-old proposed class action lawsuit by Amazon Flex drivers remains stuck in the early stages due to repeated pauses while the Supreme Court wrestles with the complexities of mandatory arbitration, Bloomberg Law reports.

This news comes after our previous report on the thousands of Flex drivers challenging their independent contractor classification and seeking employee benefits. While these drivers recently filed a wave of arbitration claims, the core issue of whether they can be forced into arbitration hinges on the Supreme Court's ongoing interpretations of the Federal Arbitration Act (FAA).

Delays Plague Long-Running Amazon Flex Driver Classification Lawsuit

The lawsuit (Rittman v. Amazon.com, Case No, 16-01554), filed in 2016 by Bernadean Rittman in Washington federal court, alleges that Amazon misclassified Flex drivers as independent contractors, denying them minimum wage, overtime, and other benefits mandated by the Fair Labor Standards Act (FLSA) and Washington state law. This classification is crucial, as employee status grants access to these benefits and protections under labor laws.

However, the case has been repeatedly stalled as the Supreme Court refines the scope of the FAA. This 1925 law allows companies to enforce agreements requiring disputes to be settled through arbitration, a process often touted as faster and cheaper than traditional court litigation. However, in the case of Rittman v. Amazon, the applicability of the FAA hinges on whether Flex drivers can be categorized as "transportation workers" exempt from mandatory arbitration under the law.

This legal back-and-forth has frustrated both sides, with drivers unable to pursue their claims collectively and Amazon facing the prospect of numerous individual arbitrations.

Legal experts criticize the Supreme Court's approach to the FAA for its narrow focus on specific cases. This piecemeal approach creates confusion in lower courts, as the FAA, originally intended for business-to-business disputes, is now being stretched to cover employment and consumer issues. The result? A tangled legal web that delays worker claims while courts grapple with gray areas in the interpretation of the FAA.

Transportation Worker Exemption: A Potential Lifeline for Amazon Flex Drivers?

A glimmer of hope for the Flex drivers might lie in the FAA's "transportation worker carveout" provision. This exemption allows certain transportation workers to bypass mandatory arbitration. However, the Supreme Court hasn't definitively ruled on whether delivery drivers fall under this category. In April of this year, the court declined to review two petitions seeking clarification, leaving the issue unresolved.

Despite the ongoing uncertainty, over 15,867 drivers have filed individual arbitration claims against Amazon. These claims address unpaid wages and lost benefits. However, Amazon argues that many drivers are bound by different arbitration agreements or don't qualify for the exemption. The company is also petitioning courts to force some drivers into individual arbitration.

The next key step involves the district court's decision on class certification. If certified, the lawsuit could encompass hundreds of drivers. Meanwhile, Amazon's attempts to force individual arbitration will likely be challenged by the drivers' attorneys.