Bruce Gates v. TF Final Mile, LLC ( 2019 )


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  •               Case: 16-17717     Date Filed: 08/15/2019     Page: 1 of 3
    [DO NOT PUBLISH]
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE ELEVENTH CIRCUIT
    ________________________
    No. 16-17717
    ________________________
    D.C. Docket No. 1:16-cv-00341-RWS
    BRUCE GATES,
    on behalf of himself and those similarly situated,
    Plaintiff - Appellant,
    versus
    TF FINAL MILE, LLC,
    a Foreign Limited Liability Company,
    formerly known as Dynamex Operations East, LLC,
    Defendant - Appellee.
    ________________________
    Appeal from the United States District Court
    for the Northern District of Georgia
    ________________________
    (August 15, 2019)
    Case: 16-17717        Date Filed: 08/15/2019      Page: 2 of 3
    Before JORDAN, GRANT, and SILER, ∗ Circuit Judges.
    PER CURIAM:
    The plaintiffs—a group of same-day delivery drivers—sued their former
    employer—TF Final Mile, LLC—under the Fair Labor Standards Act, 29 U.S.C. §
    201 et seq., alleging unpaid minimum and overtime wages. They appeal the
    district court’s order dismissing their complaint and compelling arbitration.
    TF Final Mile moved to dismiss the complaint and compel arbitration
    pursuant to the parties’ Independent Contractor Agreement for Transportation
    Services, which contained an arbitration provision. In its motion, TF Final Mile
    argued that the plaintiffs’ claims should be arbitrated under the Federal Arbitration
    Act (FAA), 9 U.S.C. § 1 et seq. The plaintiffs responded that § 1 of the FAA,
    which provides a narrow exemption to arbitration, applies to the Independent
    Contractor Agreement. Specifically, 9 U.S.C. § 1 “exempts from [FAA] coverage
    any arbitration agreement contained in ‘contracts of employment of . . . workers
    engaged in foreign or interstate commerce.’” Hill v. Rent-A-Center, Inc., 
    398 F.3d 1286
    , 1288 (11th Cir. 2005) (quoting § 1).
    In addressing the exemption, the district court considered, among other
    things, whether the Independent Contractor Agreement was a “contract[ ] of
    employment” under § 1. The determining factor, according to the district court,
    ∗The Honorable Eugene E. Siler, Jr., United States Circuit Judge for the Sixth Circuit, sitting by
    designation.
    2
    Case: 16-17717    Date Filed: 08/15/2019     Page: 3 of 3
    was whether the plaintiffs “were independent contractors or Defendant’s
    employees[.]” D.E. 32 at 7 (emphasis added). Because it concluded that the
    plaintiffs were independent contractors, the district court ruled that § 1 did not
    apply. See 
    id. at 9.
    In other words, the district court believed that an independent
    contractor agreement is not a contract of employment under § 1.           Given an
    intervening Supreme Court decision, that was error.
    After the district court entered its order, the Supreme Court held in New
    Prime Inc. v. Oliveira, 
    139 S. Ct. 532
    , 539–44 (2019), that § 1 applies to employer-
    employee agreements as well as independent-contractor agreements because, at the
    time Congress passed the FAA, “contracts of employment” included independent
    contractor agreements. Under the Court’s holding in New Prime, the district court
    erred by treating § 1’s application as contingent upon “whether Plaintiffs were
    independent contractors or [ ] employees.” D.E. 32 at 7.
    For these reasons, we reverse the district court’s order of dismissal and
    remand for reconsideration in light of the Supreme Court’s opinion in New 
    Prime, 139 S. Ct. at 539
    –44.
    REVERSED AND REMANDED.
    3
    

Document Info

Docket Number: 16-17717

Filed Date: 8/15/2019

Precedential Status: Non-Precedential

Modified Date: 8/15/2019