NJ Delivery Drivers Must Arbitrate Despite Federal Exemption

Law360 (July 14, 2020, 3:52 PM EDT) -- The New Jersey Supreme Court on Tuesday said delivery drivers cannot pursue proposed class actions against transportation companies and instead must arbitrate their claims on an individual basis in light of the New Jersey Arbitration Act, even if the workers are exempt from arbitration under the Federal Arbitration Act.

The state's highest court found that the NJAA may apply to arbitration agreements despite the fact that parties to the agreements are covered by the FAA exemption, handing a victory to Strategic Delivery Solutions LLC and Health Express Corp. after conflicting state appellate opinions in separate wage suits against the businesses....

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