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Massachusetts Supreme Judicial Court Reverses Denial of Motion to Compel Arbitration, Holds Grubhub Drivers Must Arbitrate Employment Claims

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Massachusetts Supreme Judicial Court Reverses Denial of Motion to Compel Arbitration, Holds Grubhub Drivers Must Arbitrate Employment Claims


On July 27, 2022, in Archer v. Grubhub, the Massachusetts Supreme Judicial Court docket thought of whether or not Grubhub supply drivers inside the Commonwealth are exempt from arbitration beneath Part 1 of the Federal Arbitration Act (FAA). FAA Part 1 exempts “seamen, railroad workers, or another class of employees engaged in international or interstate commerce.” The SJC joined quite a few different courts in figuring out such drivers aren’t a category of transportation employees exempt from the FAA and that the digital arbitration agreements with class motion waivers among the many drivers and Grubhub are binding. The ruling reversed the Superior Court docket choose’s denial of Grubhub’s movement to compel arbitration.

Part 1 of the FAA Does Not Exempt Grubhub Drivers

On the coronary heart of the case was an digital settlement among the many plaintiff drivers and Grubhub that was executed by an internet portal by which the plaintiffs needed to activate a hyperlink titled “Arbitration Settlement” with an choice to view the textual content of the settlement when navigating to the signature web page. The signature web page required plaintiffs to acknowledge they’d learn, understood, and agreed to be sure by the phrases of the arbitration settlement.  The textual content of the doc contained an settlement to arbitrate all disputes arising out of or referring to employment with Grubhub, together with claims associated to retaliation or wages. The arbitration settlement additionally included a category motion waiver.

When plaintiffs in 2019 filed go well with claiming that Grubhub unlawfully retaliated towards their wage complaints, Grubhub filed a movement to compel arbitration on the premise of the digital settlement. Nevertheless, the Superior Court docket choose discovered the plaintiffs fell inside the exemption contained in Part 1 of the FAA as a result of they transported items manufactured outdoors of Massachusetts and denied the movement.

Offered with the query whether or not Grubhub drivers have been exempt from the FAA, the SJC conclusively answered in a 21-page unanimous opinion that they aren’t. The opinion defined, “Notably, all courts which have thought of the applicability of the residual clause [the Section 1 exemption] to supply drivers much like the plaintiff supply drivers on this case have reached the identical conclusion.” Like these different courts, the SJC reasoned that, given the context and language of the FAA provision in query, “another class of employees engaged in international or interstate commerce” ought to apply solely “to ‘transportation employees’ really engaged within the motion of products in interstate commerce,” moderately than drivers who haven’t moved throughout state or nationwide borders.

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Below the Check Set Forth in Kauders, the Digital Arbitration Settlement Was Enforceable

For companies coming into into contracts with Massachusetts workers and prospects, the SJC’s extra evaluation of the validity of the Grubhub digital settlement is of specific curiosity. Below Massachusetts legislation, a buyer is deemed to have assented to an digital settlement provided that the counterparty enterprise fairly communicated its phrases and fairly obtained buyer assent as set forth within the choice Kauders v. Uber Techs., Inc., 486 Mass. 557, 571 (2021). The SJC elaborated on this commonplace, explaining “[r]easonable discover of a contract’s phrases exists even when the celebration didn’t really view the settlement, as long as the celebration had an ample alternative to take action.” As well as, “[s]o lengthy because the celebration is required to make some indication of assent, equivalent to choosing ‘I agree’ or ‘I settle for,’ the truth that the celebration chooses to not learn the settlement doesn’t render it unenforceable.” In Archer, as a result of plaintiffs have been required to offer their digital signatures on a web page that knowledgeable them they have been signing an arbitration settlement, affordable discover was supplied. Lastly, the SJC held that any alleged delay by Grubhub in offering the arbitration settlement to the plaintiffs earlier than the submitting of the go well with didn’t impact a waiver of its enforcement when Grubhub had well timed filed its movement to compel arbitration in response to the grievance. In gentle of those elements, the SJC held Grubhub was entitled to implement the digital arbitration settlement with its class motion waiver.

The Archer choice is necessary affirmation of the enforceability of digital arbitration agreements and sophistication motion waivers beneath Massachusetts legislation, in addition to the applicability of the FAA to drivers and different transportation employees contracting with companies as a part of the gig financial system within the Commonwealth.


©2022 Pierce Atwood LLP. All rights reserved.
Nationwide Regulation Evaluation, Quantity XII, Quantity 221



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Mass. audit of DCF finds kids' mental health care was mismanaged

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Mass. audit of DCF finds kids' mental health care was mismanaged


A new report says the Massachusetts Department of Children and Families mismanaged mental health care for children.

State Auditor Diana DiZoglio said her report found that DCF did not always obtain or renew court approval before children under its care were given antipsychotic medications. It also found the agency did not always document or update medications listed in children’s medical passports. And nearly all of the cases examined by the audit had information missing from their files.

DiZoglio said this shows procedures need to change.

“There are young lives attached to each of these case files and proper documentation can make all of the difference when it comes to a child’s protection,” she told NBC10 Boston Friday.

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In a statement, a representative for the department said it appreciated DiZoglio’s “attention to the safety and health of children in foster care” and that it was working on addressing the documentation gaps her report identified.

“We also recognize the importance of consistently updating current medical information in the child’s electronic case record and are exploring adjustments to policy and practice,” the statement said. “Since the audit period ended in June 2021, DCF gained access to monthly MassHealth Pharmacy claims data, which is used to create electronic medication records and, any time prescribers recommend anti-psychotics for a child, DCF conducts a medical review to assesses the appropriateness of the medication.”



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Here's how Trump's proposed new policies may affect Mass.

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Here's how Trump's proposed new policies may affect Mass.


Politics

Trump’s campaign promises and upcoming return to the White House could impact industries all over Massachusetts.

Former president Donald Trump takes the stage for a campaign rally in Coachella, Calif., on Saturday, Oct. 12, 2024. Jordan Gale/The New York Times

Donald Trump is on his way back to the White House following his decisive win Tuesday, and his sweeping campaign promises could yield some big impacts in Massachusetts.

For one thing, there’s no love lost between Trump and Gov. Maura Healey, who took the first Trump administration to court 96 times during her tenure as state attorney general (and won in 77% of those cases, per The Boston Globe). Likewise, current Attorney General Andrea Campbell said her office is ready to pounce. 

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Trump’s vows to overhaul education and reshape health care hit home for Massachusetts, which prides itself on being a national leader in both sectors. His mass deportation plans could devastate some communities in the Bay State, where 18.1% of residents were born in another country. 

Here’s a (non-exhaustive) roundup of five areas where Trump’s policies could impact Massachusetts.

Immigration

Trump has promised to “carry out the largest deportation operation in American history.” His hardline approach focuses largely on the U.S.-Mexico border, with vows to strengthen U.S. Immigration and Customs Enforcement and increase penalties for illegal border crossings and overstayed visas. And that could have serious impacts in Massachusetts, which had about 325,000 unauthorized immigrants as of 2022, per Pew Research Center data. 

The ongoing migrant crisis has become a hot-button issue in Massachusetts in recent years, with frequent battles over shelters and other forms of state aid. Immigration policies were also a key issue in the lawsuits Healey filed or joined against the federal government as AG. 

Trump is likely to face more legal challenges this time around, and the Massachusetts Immigrant and Refugee Advocacy Coalition has vowed to “fight against xenophobic policies and rhetoric.”

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“Policies such as carrying out mass deportations, revoking humanitarian parole programs, and ending Temporary Protected Status are unjust and un-American,” Executive Director Elizabeth Sweet said in a statement Wednesday. “MIRA will not stand by quietly while our immigrant communities are under attack. We will tirelessly work to protect our immigrant population, and their right to due process here in Massachusetts and across the country.”

Also prepared is Boston-based Lawyers for Civil Rights, which filed a class action lawsuit against Florida Gov. Ron DeSantis and others on behalf of a group of migrants flown to Martha’s Vineyard in 2022.

“At Lawyers for Civil Rights, we have been down this road before,” LCR Executive Director Iván Espinoza-Madrigal said in a statement. “Time after time, we have filed lawsuits against the Trump Administration — as we would against any official, blue or red, who tramples on the Constitution.” 

Immigrants gather with their belongings outside St. Andrews Episcopal Church, Wednesday Sept. 14, 2022, in Edgartown, Mass., on Martha’s Vineyard. – Ray Ewing/Vineyard Gazette via AP

Transit

The MBTA has benefitted substantially from federal funding during President Joe Biden’s time in office, and General Manager Phil Eng has said he will seek federal grants and assistance as the T tries to stave off a “fiscal cliff” projected for next year.  

Yet the Bipartisan Infrastructure Law, which has provided millions of dollars in funding for the MBTA and Massachusetts transportation projects, expires in 2026. The law’s future beyond then isn’t clear, and Project 2025 — a possible blueprint for Trump’s second term written by his allies — proposes further attacks on federal transit funding.

According to the Center for American Progress, a liberal-leaning public policy research organization, Project 2025 would defund transit maintenance and increase costs for commuters in part by eliminating critical Federal Transit Administration funding. The MBTA sorely needs those funds; last year, the agency said it would cost about $24.5 billion to bring the T’s infrastructure into a state of good repair, thanks to years of underinvestment. 

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Health care

Trump has long taken aim at the Affordable Care Act, colloquially known as Obamacare, and in September’s presidential debate said his team is “looking at different plans” to possibly replace it. If he gets his way with proposed health care policy changes, that could mean higher costs for Americans, including some in Massachusetts. 

Speaking to The Boston Globe, Massachusetts Nurses Association Executive Director Julie Pinkham also raised concerns that a growing crisis in the state’s health care system could fester or worsen under Trump’s second term. She also pointed out that the health care workforce here has long been overburdened and needs higher federal reimbursements for insurance programs for many patients, according to the Globe. 

“From the standpoint of people delivering care, this isn’t good,” Pinkham told the newspaper. She also reportedly expressed fear the new administration could jeopardize the state’s health reforms and ability to treat low-income patients. 

Trump has hinted that Robert F. Kennedy Jr., a vaccine critic who holds no medical or public health degrees, could have a “big role” in his second administration. RFK Jr. has said “entire departments” of the Food and Drug Administration “have to go,” and his comments have stoked fear and uncertainty among public health experts and the pharmaceutical and biotech industries, which have a large footprint in Greater Boston.  

Gov. Maura Healey stands at a dais, wearing a light blue suit and standing in front of an excited crowd, where one person can be seen holding a sign that reads
Gov. Maura Healey and others gathered outside the State House to announce several steps Massachusetts is taking to ensure the continued availability of mifepristone. – Pat Greenhouse/Boston Globe Staff, File

Experts have also warned that Trump’s second term will likely mean more threats to reproductive rights. Abortion remains legal and protected by state law in Massachusetts, and Healey has taken steps to stockpile the abortion medication mifepristone amid federal turmoil. But experts told the Globe some New England abortion providers are likely to lose significant federal funding under the new Trump administration and may need state leaders to cover the shortfall. 

Lora Pellegrini, president of the Massachusetts Women’s Political Caucus, told GBH Trump’s election stokes other fears concerning reproductive care.

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“We could see a complete federal ban on abortion, contraception, IVF that would impact all the states, including Massachusetts, so that’s pretty shocking and I’m not sure everyone fully understands that,” Pellegrini told the news outlet.

Trump also made attacks on transgender Americans central to his campaign, often targeting gender-affirming care. 

Environment

Trump has threatened to issue an executive order targeting offshore wind development, a cornerstone of Massachusetts’s clean energy and climate goals.

“He’s going to shut down offshore wind,” Healey said in August, according to CommonWealth. “He’s going to shut down all clean energy technology. He’s going to shut down the move toward renewables. And if that were to happen, we would end up with a sicker, less healthy population. The consequences on our economy would be devastating.”

Trump’s election raises concerns about the state’s likely loss in federal support for clean energy, a sector that contributed more than $14 billion to Massachusetts’s gross state product in 2022, according to the Massachusetts Clean Energy Center. In fact, Trump has vowed to increase U.S. production of fossil fuels, and the Republican platform includes a promise to “DRILL, BABY, DRILL.” 

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Students at a training program for offshore wind installation at Massachusetts Maritime Academy. – AP Photo/Seth Wenig, File

Education

Trump has said he wants to close the federal Department of Education and give more control to individual states, though he wouldn’t be able to do so unilaterally. One of his core campaign promises is to “cut federal funding for any school pushing critical race theory, radical gender ideology, and other inappropriate racial, sexual, or political content on our children,” potentially teeing up a battle with more liberal-leaning states like Massachusetts. 

Trump’s election will likely impact the state’s robust higher education sector, too, given his plan to “reclaim” universities from “Marxist maniacs.” According to the Globe, Trump and his allies propose replacing universities’ existing oversight agencies with new ones that would defend “the American tradition and Western civilization,” and they’ve hinted at plans to target campus diversity initiatives. A second Trump term also spells some uncertainty for Massachusetts student loan borrowers. 

But there’s a chance Massachusetts won’t feel the educational impacts quite as deeply as some other states, John Baick, a history professor at Western New England University, suggested in comments to MassLive last month. 

“The basic reality is that we’re going to be a pro-education state. And to put it rather bluntly, it’s similar to the idea of reproductive rights and a woman’s right to choose,” Baick told the news outlet. “What happens in Washington, D.C. may affect the country pretty dramatically, in some states pretty dramatically, but Massachusetts will basically be okay.”

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Abby Patkin is a general assignment news reporter whose work touches on public transit, crime, health, and everything in between.






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Beverly, Gloucester teachers on strike. Here's why

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Beverly, Gloucester teachers on strike. Here's why


Schools are closed in two Massachusetts cities on Friday as teachers go on strike. Teachers in Beverly and Gloucester plan to picket as they continue to negotiate a new contract.

Well, they’ve been in negotiations without a contract since February – and have reached an impasse.

So instead of being in the classrooms today, teachers will be picketing outside these schools.

In Gloucester, they’re looking for an 18-25% raise over the course of a new contract, and up to 52 days of paid parental leave, among other issues.

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But Gloucester’s mayor says the city is facing up to a $7 million budget shortfall, and it’s impossible to give teachers everything they’re asking for.

Meanwhile in Beverly, teachers say they’re underpaid, schools are understaffed, classrooms are overflowing, and teachers are burned out and heading to other districts.

The Department of Labor Relations is now involved, and so negotiations will be through a mediator going forward.

“None of us wants to do this, but at this point we have no choice,” said Julia Brotherton, of the Beverly Teachers Association. “Beverly schools are in crisis. Critical paraprofessional positions regularly go unfilled because the city pays only poverty wages.”

The Beverly School Committee said in a statement, “We want to make it clear that the School Committee does not condone the illegal actions of the Beverly Teachers Association…We understand that this is a severe disruption to the lives of our students and families…”

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Meanwhile, Gloucester has a playoff football game Friday night that could be in jeopardy and might not happen due to the strike. We should find out later in the day whether that will happen.



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