Last-Mile Delivery Firm Fails to Make Worker Arbitrate Wage Suit

RXO Last Mile Inc. lost its bid to force a delivery driver to arbitrate his wage-and-hour claims after a federal judge ruled a transportation worker exemption applies.

The Federal Arbitration Act doesn’t allow the last-mile delivery company to get the case sent to private dispute resolution because of the exemption, and the contract provision waiving the worker’s class claims is invalid, the US District Court for the Northern District of California said Thursday.

Maynor Mejia accuses RXO—which handles some local deliveries for clients such as Samsung, Peloton, and Macy’s—of violating California employment laws. He owns ABC Logistics LLC and signed ...