News & Analysis as of

Federal Arbitration Act Transportation Industry

The Federal Arbitration Act is a United States federal statute enacted in 1925 that governs arbitration in contracts implicating interstate commerce. The Act applies in both federal and state courts. 
Jackson Lewis P.C.

Ninth Circuit Continues to Expand Transportation Worker Exemption Under Federal Arbitration Act

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Courts are finding more workers who do not physically transport goods or people across state lines to be transportation workers exempt from arbitrating their claims under the Federal Arbitration Act (FAA). The U.S. Court of...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Finds Shipping Warehouse Employee Qualified as Exempt “Transportation Worker” Under the Federal Arbitration Act

On March 12, 2024, the Ninth Circuit published a decision in Ortiz v. Randstad Inhouse Services, LLC, holding that the Plaintiff Adan Ortiz (“Plaintiff”) qualified as a “transportation worker” under the Federal Arbitration...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Recent Court Rulings on FAA’s Transportation Worker Exemption May Require Employers to Update Their Arbitration Agreements

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to...more

Lathrop GPM

United States Supreme Court Expands Worker Exemption in Federal Arbitration Act

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The United States Supreme Court recently determined that an exemption to the Federal Arbitration Act excluding workers engaged in foreign or interstate commerce from coverage under the Act includes a transportation worker...more

Husch Blackwell LLP

U.S. Supreme Court Decision Reshapes FAA Exemption for Transportation Workers

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In a unanimous ruling earlier this month, the Supreme Court in Bissonnette, et al., v. LePage Bakeries Park St., LLC, et al., 601 U.S. ----144 S.Ct. 905 (2024) held that transportation workers need not work for a company in...more

McAfee & Taft

Special delivery: SCOTUS provides guidance on arbitration exemption for transportation workers

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On April 12, 2024, in Bissonnette et. al, v. LePage Bakeries Park St., LLC, et. al, the U.S. Supreme Court provided guidance on the transportation worker exemption under Section 1 of the Federal Arbitration Act (FAA),...more

Morgan Lewis

US Supreme Court Clarifies Application of Federal Arbitration Act’s ‘Transportation Worker’ Exemption

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In Bissonnette v. LePage Bakeries, a unanimous Supreme Court clarified the scope of the Federal Arbitration Act’s (FAA’s) “transportation worker” exemption by rejecting the industry-based test applied in the Second Circuit....more

ArentFox Schiff

Supreme Court Holds That the FAA’s Transportation Exemption Applies to all Employees Involved in Interstate Transportation

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Enacted in 1925, the Federal Arbitration Act (FAA) reflects the nation’s policy favoring arbitration agreements. Employers routinely rely on the FAA to compel aggrieved employees to press their disputes before an arbitrator,...more

Parker Poe Adams & Bernstein LLP

Supreme Court Says Arbitration Law Exemption Applies to Worker's Jobs and Not Company's Business

The Federal Arbitration Act (FAA) provides employers with wide discretion to require that disputes with employees be subject to mandatory arbitration rather than proceeding through the court system. Many employers favor...more

Holland & Knight LLP

Food Delivery Drivers' Misclassification Suit May Be Exempt from Arbitration

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The U.S. Supreme Court decided Bissonnette, et al. v. LePage Bakeries Park St., LLC, et al. on April 12, 2024. In a unanimous decision written by Chief Justice John Roberts, the Court held that a transportation worker need...more

McGlinchey Stafford

Supreme Court Clarifies FAA Arbitration Exception Not Limited to Transportation Workers

McGlinchey Stafford on

On April 12, 2024, the Supreme Court issued its decision in Bissonnette v. LePage Bakeries Park St., LLC, 601 U.S. __ (2024). It unanimously held that the exception to arbitration under Section 1 of the Federal Arbitration...more

Payne & Fears

Federal Arbitration Act’s Interstate Commerce Exemption Applies Outside the “Transportation Industry”

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In a unanimous opinion, the Supreme Court held today that the Federal Arbitration Act’s (“FAA”) exemption for any “class of workers engaged in foreign or interstate commerce” is not limited to workers whose employers are in...more

Holland & Knight LLP

U.S. Supreme Court: Workers Who Transport Goods Are Exempt from FAA, Regardless of Industry

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The U.S. Supreme Court on April 12, 2024, decided Bissonnette v. LePage Bakeries Park St., LLC. The central issue revolved around the Federal Arbitration Act (FAA) and its applicability to workers engaged in interstate...more

Holland & Knight LLP

U.S. Supreme Court Hears Argument on Arbitration Exemption for Food Delivery Drivers

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The U.S. Supreme Court heard oral argument on Feb. 20, 2024, on whether food distributors are exempt from arbitration under Section 1 of the Federal Arbitration Act (FAA), governing "contracts of employment of seamen,...more

Cozen O'Connor

Democratic AGs Try to Drive a Truck Through Arbitration Act Exemption

Cozen O'Connor on

A group of 16 Democratic AGs filed an amicus brief before the U.S. Supreme Court in Bissonnette v. LePage Bakeries, urging the reversal of a lower court’s holding that truck drivers for non-transportation companies do not...more

Parker Poe Adams & Bernstein LLP

Supreme Court to Review Scope of Arbitration Exclusion for Transportation Workers

The Federal Arbitration Act (FAA) requires state and federal courts to defer to private arbitration agreements entered into between parties, including employers and employees. Employers often use arbitration agreements to...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Ninth Circuit Again Rules Last-Leg Delivery Drivers Covered by FAA Interstate Commerce Exemption

On July 21, 2023, the U.S. Court of Appeals for the Ninth Circuit kept in place a ruling that local delivery drivers who made deliveries completely inside California are still engaged in interstate commerce and exempt from...more

Carlton Fields

First Circuit Provides Additional Guidance on FAA’s Transportation Worker Exception

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The First Circuit Court of Appeals has followed up on its recent jurisprudence outlining the standards for the Federal Arbitration Act’s “transportation worker exception,” as we previously posted, by applying its recently...more

Carlton Fields

First Circuit Weighs in on FAA’s Transportation Worker Exception

Carlton Fields on

The First Circuit Court of Appeals recently clarified the standards for invoking the “transportation worker” exception to the Federal Arbitration Act. The court noted that fact-finding on that exception should focus on the...more

Seyfarth Shaw LLP

State Law Can Serve as a Backstop to the Federal Arbitration Act

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Seyfarth Synopsis: Since the Supreme Court’s decision in Southwest Airlines Co. v. Saxon, many employers have seen an uptick in plaintiffs seeking to avoid arbitration by arguing that they are transportation workers and thus...more

Nutter McClennen & Fish LLP

Massachusetts Highest Court Holds Grubhub Drivers Are Not Exempt from Arbitration under FAA

In Archer, et al. v Grubhub, Inc., the Massachusetts Supreme Judicial Court (SJC) ruled that § 1 of the Federal Arbitration Act (FAA) applies to Grubhub delivery drivers. The plaintiffs, former delivery drivers for Grubhub,...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Supreme Court Sends Federal Arbitration Act Interstate Commerce Exemption Issue Back to Ninth Circuit

​​​​​​​On October 17, 2022, the Supreme Court of the United States vacated a Ninth Circuit ruling addressing the scope of the “transportation worker” exemption from the Federal Arbitration Act (FAA). The FAA generally...more

BakerHostetler

Second Circuit Again Considers if Bakery Goods Drivers Are Excluded Under the FAA Because They Are “Transportation Workers”. The...

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While the Supreme Court’s opinion in Southwest Airlines Co. v. Saxon, 142 S. Ct. 1783 (2022), brought needed clarity to the analysis of the class of workers excluded as “transportation workers” by the residual clause of the...more

Holland & Knight LLP

Massachusetts Food Delivery Drivers Not Exempt From Arbitration

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One issue that continues to be debated in state and federal courts is whether delivery drivers who deliver takeout food and other prepackaged goods from restaurants, delicatessens and convenience stores fall into the class of...more

Husch Blackwell LLP

SCOTUS Nixes Forced Arbitration Clause in Southwest Employment Contract of Cargo Ramp Supervisor

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In a unanimous 8-0 decision, in Southwest Airlines Co. v. Saxon, the U.S. Supreme Court (Court) held that airline cargo ramp supervisors that assist with loading and unloading cargo constitute a class of workers engaged in...more

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