Sysco Loses Key Legal Shield as Court Sides With Injured Delivery Driver
A Texas appeals court has ruled that Sysco cannot force an injured driver into private arbitration, potentially opening the floodgates for public litigation across the food distribution industry.
By Foodie Pundit Newsroom - Published - Updated - Section: Restaurant Openings
Key points
- A Texas appeals court ruled that Sysco delivery drivers are exempt from the Federal Arbitration Act as 'transportation workers.'
- The decision means Sysco must face worker injury claims in public court rather than private arbitration.
- Independent restaurants may see 'trickle-down' costs as distribution giants face higher legal and insurance risks.
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