Lawson v. Grubhub, Inc., No. 18-15386 (9th Cir. 2021)
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The Ninth Circuit affirmed the district court's denial of class certification in an action alleging minimum wage, overtime, and expense reimbursement claims against Grubhub. Plaintiff contends that he was misclassified as an independent contractor rather than an employee when he worked for Grubhub as a food delivery driver.
The panel concluded that the district court properly denied certification to plaintiff's proposed class of delivery drivers in California where all members of plaintiff's putative class—except plaintiff and one other—signed agreements waiving their right to participate in a class action. The panel explained that the district court correctly held plaintiff did not satisfy the requirements in Federal Rule of Civil Procedure 23(a) because he is neither typical of the class nor an adequate representative, and because the proceedings would be unlikely to generate common answers. The panel rejected Grubhub's claim that California Proposition 22 abated the application of the ABC test to plaintiff's pending class claim. In this case, there is no dispute that plaintiff’s minimum wage and overtime claims are rooted in wage orders. The panel concluded that, because the district court rendered its judgment before the California Supreme Court decided Dynamex Operations W., Inc. v. Superior Court, 416 P.3d 1, 33–40 (Cal. 2018), it had no occasion to apply the ABC test to plaintiff's claims. The panel remanded for the district court to apply the ABC test in the first instance to plaintiff's expense reimbursement claim.
Court Description: Class Certification / Employment Law. The panel affirmed the district court’s denial of class certification, vacated the judgment for Grubhub, Inc. on the minimum wage, overtime, and expense reimbursement claims, and remanded for further proceedings in a diversity action brought by a plaintiff food delivery driver for Grubhub. Grubhub classified the plaintiff as an independent contractor rather than as an employee. The plaintiff alleged he was misclassified, alleged violations of the California Labor Code, and sought to represent a class of similarly situated delivery drivers in California. The panel held the district court properly denied certification to plaintiff’s proposed class of delivery drivers in California. All members of plaintiff’s putative class – except plaintiff and one other – signed agreements waiving their right to participate in a class action. Plaintiff could not satisfy the requirement in Fed. R. Civ. P. 23(a) because he is neither typical of the class nor an adequate representative, and because the proceedings would be unlikely to generate common answers. Plaintiff adduced no facts in addition to those already considered by the district court that would change the analysis as to class certification. LAWSON V. GRUBHUB 3 In Dynamex Operations W., Inc. v. Superior Court, 416 P.3d 1, 33–40 (Cal. 2018), the California Supreme Court adopted an “ABC test” for classification of workers raising claims rooted in California wage orders. In Vazquez v. Jan- Pro Franchising International, Inc., 478 P.3d 1207 (Cal. 2021), the California Supreme Court held that the ABC test applied retroactively to claims rooted in wage orders. The panel rejected Grubhub’s contention that California Proposition 22 “abated” the application of its ABC test to plaintiff’s pending claims. There is no dispute that plaintiff’s minimum wage and overtime claims are rooted in wage orders. Because the district court rendered its judgment before the California Supreme Court decided Dynamex, it had no occasion to apply the ABC test to plaintiff’s claims. The panel remanded to the district court to apply the ABC test in the first instance. The California Supreme Court in Dynamex did not consider whether expense reimbursement claims under Cal. Labor Code § 2802 were subject to the ABC test. The panel remanded for the district court to decide in the first instance whether the ABC test applied to plaintiff’s expense reimbursement claim. 4 LAWSON V. GRUBHUB
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