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Court Watch

By Cynthia M. Klaus

Eighth Circuit Requires Case Be Stayed for Arbitration

The Eighth Circuit in a case involving hot-button issues such as the classification of individuals as employees or franchisees and the enforceability of class action waivers in arbitration cases, recently upheld a decision that the action must proceed in arbitration. Green v. SuperShuttle Int'l, Inc., 653 F.3d 766 (8th Cir. 2011). The plaintiffs were a group of airport shuttle drivers for a shuttle service owned by SuperShuttle. SuperShuttle classified the drivers as franchisees rather than employees, and the drivers signed Unit Franchise Agreements. Believing that they are employees and not franchisees, several shuttle bus drivers commenced a class action lawsuit in Minnesota state court, alleging violations of the Minnesota Fair Labor Standards Act.

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