Betancourt v. Transportation Brokerage Specialists, Inc.Annotate this Case
Plaintiff worked as a delivery driver for TBS, a “last-mile” delivery company whose primary client was Amazon.com. At the start of his employment, he signed an At-Will Employment, Non-Disclosure, Non-Solicitation, Class-Action Waiver and Arbitration Agreement. Plaintiff filed suit asserting violations of the Labor Code, California’s Unfair Competition Law, and the Private Attorneys General Act, unlawful retaliation, and wrongful termination. The trial court denied TBS’s motion to compel the plaintiff to arbitrate his individual claims and to dismiss his class claims. The court found that the plaintiff was exempt from Federal Arbitration Act (9 U.S.C. 1, FAA) coverage because he was a transportation worker engaged in interstate commerce and that the class action waiver was unenforceable, rendering the arbitration agreement unenforceable.
The court of appeal affirmed that the plaintiff is exempt from FAA coverage and that the class action waiver is unenforceable under California law. The court reversed the order denying the motion to compel arbitration of the plaintiff’s individual claims; the trial court improperly found the arbitration agreement unenforceable in its entirety rather than severing the class action waiver provision from the remainder of the employment agreement and considering the validity of the arbitration provision with respect to the individual claims for
unlawful retaliation and wrongful termination.