The United States Supreme Court’s arbitration-friendly decision in AT&T Mobility LLC v. Concepcion, 131 S. Ct. 1740 (U.S. 2011), was extended this month to a group of “franchisees” who sought to claim they were really employees. Green v. SuperShuttle International, Inc., 2011 U.S. App. LEXIS 18483 (8th Cir. Sept. 6, 2011). The franchisees in this case are current and former shuttle drivers who alleged (on a class basis) violations of the Minnesota Fair Labor Standards Act. As reported in Issue 135 of The GPMemorandum, the federal district court compelled arbitration on an individual basis pursuant to franchise agreements the drivers had signed. On appeal, applying the AT&T Mobility decision, the Eighth Circuit held that the FAA preempts any state-law challenge to arbitration agreements, including the class action waiver provision in the SuperShuttle agreements. Accordingly, the district court correctly granted the motion to compel arbitration and enforced the class action waivers, the Eighth Circuit ruled.
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