Schmidt Baking Delivery Drivers Must Arbitrate Worker Status Row

Delivery drivers who say Schmidt Baking stiffed them on pay by misclassifying them as contractors don’t qualify for a transportation worker arbitration exemption, a federal judge said.

The individual workers, who argue they’re really employees, formed corporate entities, and those entities entered into distribution agreements with Schmidt Baking Co. and Schmidt Baking Distribution LLC. The Federal Arbitration Act carveout doesn’t cover contracts between two business entities, so the workers can’t keep their claims in court, the US District Court for the District of Connecticut said Thursday.

The FAA exemption applies to contracts of employment of classes of workers engaged in ...