U.S. Supreme Court Says Arbitrable Actions Must be Stayed, Not Dismissed

WASHINGTON, D.C. — The U.S. Supreme Court has unanimously ruled that courts must stay, rather than dismiss, an action that is subject to arbitration pursuant to Section 3 of the Federal Arbitration Act.

In a May 16 opinion, the high court found that under Section 3, courts lack discretion to dismiss such actions and that “statutory text, structure and purpose all point to this conclusion.”

Plaintiffs are current and former delivery drivers for Intelliserve who sued the company in Arizona state court, accusing it of violating federal and state employment laws by misclassifying them as independent contractors, failing to pay …