A U.S. appeals court has ruled that Grubhub Inc delivery drivers must arbitrate claims that they were misclassified as independent contractors, deepening a split over the scope of an exemption from arbitration for workers who are “engaged in interstate commerce.”
A unanimous three-judge panel of the 7th U.S. Circuit Court of Appeals on Tuesday said the drivers have no involvement in moving goods across state lines, and merely delivering food to customers that came from another state is not enough to qualify for an exemption from the Federal Arbitration Act (FAA).
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