Ninth Circuit Orders Redo on UPS Bid to Arbitrate Wage Lawsuit

A California district court must reconsider whether state or federal law allows United Parcel Service Inc. to push a former driver’s wage claims into arbitration, a federal appeals court ruled.

The district court’s order compelling arbitration of Rebecca Orr’s individual claims against UPS wrongly sidestepped deciding whether the federal law that’s used to enforce arbitration agreements applies to Orr’s contract, the US Court of Appeals for the Ninth Circuit held Tuesday.

The decision illustrates one of the ways that courts are still grappling with the US Supreme Court’s 2019 decision in New Prime, Inc. v. Oliveira, which found that ...