FAA Does Not Apply To Interstate Truck Drivers

A recent Court of Appeal opinion confirmed that transportation workers, such as interstate truck drivers, may bring class action lawsuits against their employers even if they signed an arbitration agreement that prohibits class, collective and representative actions. In Garrido v. Air Liquide Industrial U.S. LP, ___ Cal.App.4th ___ (Oct. 26, 2015), the plaintiff, a truck driver, filed a class action lawsuit against his employer for wage and hour violations. The employer sought to compel individual arbitration on the grounds that the plaintiff had signed an arbitration agreement that was governed by the FAA and specifically banned class actions. The Court of Appeal declined to enforce the arbitration clause, finding that the FAA did not apply to interstate truck drivers, such as the plaintiff, because transportation workers’ employment agreements are exempt from the FAA, even when the agreements purport to be governed by the FAA.