JOHN C. COUGHENOUR, District Judge.
This matter comes before the Court on Defendants' motion for stay of class and collective action proceedings (Dkt. No. 71). Having thoroughly considered the parties' briefing and the relevant record, the Court finds oral argument unnecessary and hereby GRANTS the motion for the reasons explained herein.
Plaintiffs in this case are individuals who work or have worked as delivery drivers for Defendants Amazon.com, Inc. or Amazon Logistics, Inc. ("Amazon"), who contracted directly with Amazon and were classified by Amazon as independent contractors. (Dkt. No. 33 at 1.) At the heart of Plaintiffs' complaint is the allegation that Amazon has misclassified them as independent contractors, when they are actually employees, and therefore Amazon has violated several wage and hour statutes. (Dkt. No. 33 at 5.) Of the tens of thousands of putative class members, all but approximately 165 drivers agreed to individual arbitration as set forth in the Amazon Flex Independent Contractor Terms of Service (TOS). (Dkt. No. 36 at 3-6; Dkt. No. 37-2 at 6; Dkt. No. 49 at ¶ 15.)
Three weeks after filing their complaint, Plaintiffs filed a motion to issue notice. (Dkt. No. 20.) Amazon opposed the motion to issue notice because the vast majority of drivers had agreed to arbitrate. (Dkt. No. 47 at 21-23.) Recently, this Court issued an order granting Amazon's motion to dismiss, (Dkt. No. 36), dismissing without prejudice seven of Plaintiffs' eight claims.
Epic Systems Corp. v. Lewis (U.S. Jan. 13, 2017) (No. 16-285);
A district court has broad discretion to stay proceedings, incidental to the inherent power to control its own docket. Clinton v. Jones, 520 U.S. 681, 706 (1997) (citing Landis v. N. Am. Co., 299 U.S. 248, 254 (1936)). This power includes staying an action "pending resolution of independent proceedings which bear upon the case." Mediterranean Enters., Inc. v. Ssangyong Corp., 708 F.2d 1458, 1465 (9th Cir. 1983). "The party requesting a stay bears the burden of showing that the circumstances justify an exercise of that discretion." Nken v. Holder, 556 U.S. 418, 433-34 (2009). In determining whether to grant a stay pending the result of independent proceedings, courts consider three factors: (1) the orderly course of justice "measured in terms of the simplifying or complicating of issues, proof, and questions of law which could be expected to result from a stay," (2) the hardship or inequity that a party may suffer in being required to go forward, and (3) the possible "damage" that may result from granting a stay. Kwan v. Clearwire Corp., 2011 WL 1213176, at *2 (W.D. Wash. Mar. 29, 2011) (quoting CMAX, Inc. v. Hall, 300 F.2d 265, 268 (9th Cir. 1962)); Lennartson v. Papa Murphy's Holdings, Inc., 2016 WL 51747, at *5 (W.D. Wash. Jan. 5, 2016) (same).
Amazon argues that the Supreme Court's decision in Epic will greatly simplify the case as it will determine whether the putative class consists of approximately 165 members or tens of thousands. (Dkt. No. 71 at 5-6.) Further, Amazon argues that if notice issues and the case moves forward, extensive and costly discovery and litigation activity will follow, which may then be rendered moot by the Supreme Court's decision. (Dkt. No. 71 at 12.) Finally, Amazon maintains that Plaintiffs will not suffer hardship as a result of the stay. (Dkt. No. 74 at 2-3.)
Plaintiffs oppose a stay, reasoning that (1) the Supreme Court's decision in Epic is irrelevant because the drivers are exempt from the Federal Arbitration Act (FAA) under the transportation worker exception, (2) by the time the Supreme Court issues a decision, the statute of limitations will have run for some drivers who have not received notice and opted in,
Plaintiffs argue that the question to be decided in Epic is not dispositive of any issue in this case because Plaintiffs fall within an exception to the FAA for transportation workers engaged in interstate commerce; therefore the Supreme Court's decision in Epic will be irrelevant. (Id. at 6.) Section one of the FAA exempts from the Act's coverage all "contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce." 9 U.S.C. § 1. In order to qualify for the exemption, an individual must (1) have a "contract of employment," (2) be a "transportation worker," and (3) be "engaged in interstate commerce." See Harden v. Roadway Package Sys., Inc., 249 F.3d 1137, 1140 (9th Cir. 2001) (citing Circuit City Stores, Inc. v. Adams, 532 U.S. 105, 118 (2001)). Plaintiffs contend that they meet all three criteria. (Dkt. No. 73 at 6.)
However, as Amazon points out, the issue of how to determine whether independent contractors have a "contract of employment" under 9 U.S.C. § 1 is currently on appeal in the Ninth Circuit. Van Dusen v. Swift Transp. Co., No. 17-15102 (9th Cir. Jan. 20, 2017). This fact further supports a stay. Whether Plaintiffs are exempt from the FAA will be clarified by the Ninth Circuit's decision in Swift.
Plaintiffs next argue that in the time it takes the Supreme Court to issue a decision, the statute of limitations for some drivers may run. (Dkt. No. 73 at 11.) The shortest statute of limitations under the Fair Labor Standards Act (FLSA) is two years. 29 U.S.C. § 255. The Amazon delivery program in question began in July 2015. (Dkt. No. 73 at 11.) Plaintiffs argue that if notice does not issue to putative class members who began working in July 2015—who have yet to opt in—the statute of limitations will begin to run as early as July 2017. (Dkt. No. 73 at 11.)
While this is an important consideration, Plaintiffs overstate the severity of the issue. First, over 95% of drivers did not begin providing services until after November 2015, and over 90% began after March 2016. (Dkt. No. 75 at 1.) Second, the statute of limitations is not necessarily an all-or-nothing bar, but rather would mean the very early days of a driver's service might not be included in a plaintiff's damages calculation. The Court acknowledges that this is not a fact to be ignored, however this addresses the rights of drivers not party to the suit, and in the event the statute of limitations partially or completely runs for some class members, the best way to deal with it is to make an equitable tolling argument at a later date.
Finally, Plaintiffs argue that if notice is not sent now, and the Supreme Court's decision requires this Court find the arbitration agreement enforceable, tens of thousands of "Plaintiffs will be prejudiced by not having ever received notice about the potential violations of their rights at all." (Dkt. No. 73 at 12.) The flaw in this argument is that (a) it presupposes the drivers to be notified are already plaintiffs, and (b) if the arbitration agreement is enforceable, no notice should have issued. Furthermore, the opt-in provision of § 216(b) was added to "prevent[] large group actions, with their vast allegations of liability, from being brought on behalf of employees who had no real involvement in, or knowledge of, the lawsuit." Cameron-Grant v. Maxim Healthcare Servs., Inc., 347 F.3d 1240, 1248 (11th Cir. 2003) (internal quotations omitted).
The Court finds that Amazon has met its burden to show that a stay will likely simplify this case, Amazon will suffer hardship by having to proceed, and Plaintiffs' claims of hardship are insufficient to warrant proceeding with the case over the other concerns. Following the Ninth Circuit's resolution of Swift, Plaintiffs are free to renew their argument that they are exempt from the FAA and therefore the Supreme Court's decision will not affect this case, and request the Court lift the stay. Otherwise, the parties will inform the Court within seven days of the Supreme Court's decision in Epic.
For the foregoing reasons, Defendant Amazon's motion for stay of class and collective action proceedings (Dkt. No. 71) is GRANTED. All proceedings are STAYED until further notice from the Court.