Domino’s Loses Compulsory Arbitration Fight in Washington State

A Domino’s Pizza Inc. unit must litigate a former worker’s wage suit after a Washington state appellate court said the class action waiver in the company’s arbitration agreement is unconscionable.

Former Domino’s driver Justin Oakley is exempt from the Federal Arbitration Act, which the pizza chain chose as the governing law for its arbitration agreement. That provision is severable, but the class action waiver’s unconscionability provides another reason to reject Domino’s motion to compel arbitration, the the Washington Court of Appeals said in an unpublished opinion.

Oakley worked as a delivery and service driver at a Domino’s supply chain ...