In Sheppard v. Staffmark Investment, LLC,No. 20-cv-05443, Judge Beth Labson Freeman of the Northern District of California examined the application of the Federal Arbitration Act’s (FAA) Section 1 exemption for transportation workers in a class-action suit. In this case, a former mail sorter for UPS Mail Innovations, Inc. (UPSMI) sued UPSMI and Staffmark Investment, LLC (Staffmark), a staffing agency, with five class action claims and a representative claim under the California Private Attorneys General Act (PAGA). Judge Freeman ultimately dismissed the plaintiff’s argument that she was a transportation worker exempt from the FAA, granted the motions to compel arbitration, dismissed the class claims and remanded the PAGA claim to the state court.
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