Bakery Companies Can’t Force Workers to Arbitrate Wage Suit

A multi-billion-dollar baking corporation overreached in the dispute resolution provision of a distribution agreement with blue-collar workers, a California federal judge ruled, and, therefore, the arbitration provision is unenforceable.

Tlaloc Munoz, Miguel Ruiz, and Edgar Corona are former independent distributors of baked goods for Earthgrains Distribution LLC, a subsidiary of Bimbo Bakeries USA, Inc., the US District Court for the Southern District of California said. The three men sued alleging they and other members of the proposed class were misclassified as independent contractors and denied certain rights and protections under the California Labor Code.

A distribution agreement between each of ...