Under FAA, Shuttle Driver’s Misclassification Claims are Subject to Arbitration
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In Khalatian v. Prime Time Shuttle (5/15/15) — Cal.App.4th —, the plaintiff brought an individual claim against the defendants, alleging that they misclassified him as an independent contractor, rather than as an employee. The defendants petitioned to compel arbitration, and the trial court denied the petition. The Court of Appeal reversed, holding as follows:
The Federal Arbitration Act (FAA) applied because the plaintiff was a shuttle driver who picked up and dropped off people primarily at LAX, and thus was involved in interstate commerce.
The arbitration agreement covered the plaintiff’s allegation that he was misclassified. The agreement provided that “any controversy or claim … arising out of or relating to” the parties’ agreement, including any argument that the agreement was void or voidable, would be subject to arbitration. The plaintiff’s claim that the agreement was void or voidable under California wage law arose out of and related to the parties’ agreement. The fact that the plaintiff asserted statutory wage claims did not change this analysis.
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