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Supreme Court: Drivers hauling baked goods are in transportation, not baking
(finance.yahoo.com)
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And that’s basically it!
For others with so many questions about the why of this case...
This ruling allows the independent contractors that deliver goods for a large bakery (Flowers Foods) to be exempt from arbitration requirements under the Federal Arbitration Act (FAA), and instead take their pay dispute to court.
Arbitration is death for the little guy’s negotiating power. It costs about $150 to pursue a claim in small claims court, and about $1500 to pursue a claim in arbitration.
For most individual earners in a pay dispute, that arbitration fee is insurmountable and essentially means they’re powerless.
I ran into this problem when I discovered the contract I’d hired a lawyer to draw up for my freelancing business had an arbitration clause. First time I had a client who wouldn’t pay, I was broke and therefore had no recourse.