Muller v. Roy Miller Freight Lines, LLC

Defendant Roy Miller Freight Lines, LLC (RMFL) appealed a trial court order granting in part and denying in part its motion to compel its former employee, plaintiff William Muller (Muller), to arbitrate his wage and hour claims under the arbitration provision in his employment agreement. The trial court granted RMFL’s motion on all but one cause of action: Muller’s claim for unpaid wages, and stayed the prosecution of that remaining claim pending the completion of the arbitration. The issue this case presented for the Court of Appeal's review centered on whether the Federal Arbitration Act (FAA) applied, and more specifically, whether Muller was a transportation worker engaged in interstate commerce under 9 U.S.C. 1 (section 1) and thus exempt from FAA coverage. If he was exempt from FAA coverage, as the trial court held, Muller did not have to arbitrate his cause of action for unpaid wages because Labor Code section 229 (section 229) authorized lawsuits for unpaid wages notwithstanding an agreement to arbitrate. If the FAA applied, as RMFL contended, the FAA preempted section 229, and Muller had to submit his cause of action for unpaid wages to arbitration, along with his five other causes of action. The Court found the trial court correctly concluded Muller was exempt from FAA coverage under section 1. Even though Muller did not physically transport goods across state lines, his employer was in the transportation industry, and the vast majority of the goods he transported originated outside California. Thus, section 229 required staying the prosecution of his cause of action for unpaid wages while the other five causes of action proceed to arbitration. View "Muller v. Roy Miller Freight Lines, LLC" on Justia Law