GrubHub Decision Draws Line in Driver Arbitration Battle

A Seventh Circuit ruling that GrubHub Inc. drivers didn’t fall under the transportation worker exemption of the Federal Arbitration Act could keep gig economy wage disputes out of court.

Exemption Question: The drivers didn’t engage in interstate commerce, which would’ve allowed them to avoid arbitration agreements they signed with their employer, the court said. The ruling follows a First Circuit decision that found Amazon Flex drivers were exempt because they represent the “last leg” of interstate commerce.

Differing Opinions: “There is a lot of tension between the reasoning of these two decisions,” said Corbin Barthold, senior litigation counsel with the ...