Arbitration agreements signed by delivery drivers cannot bar a Fair Labor Standards Act (FLSA) enforcement action by the U.S. Department of Labor (DOL) on behalf of the drivers, the 9th U.S. Circuit Court of Appeals ruled.
The DOL brought an enforcement action against a business owner and his companies, Arizona Logistics Inc., doing business as Diligent Delivery Systems, and Parts Authority Arizona LLC. The DOL alleged that the owner violated the FLSA’s minimum wage, overtime, record-keeping and anti-retaliation requirements by misclassifying delivery drivers as independent contractors rather than employees.
