News & Analysis as of

Exemptions Federal Arbitration Act

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

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

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

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

Holland & Knight LLP

Do Food Distributors Meet Federal Arbitration Act's Transportation Worker Exemption?

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As we look toward the new year, a new chapter will be written by the U.S. Supreme Court regarding the scope of the exemption under Section 1 of the Federal Arbitration Act (FAA), for "contracts of employment of seamen,...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

Ervin Cohen & Jessup LLP

Ninth Circuit Broadly Interprets Exemption under Federal Arbitration Act for Transportation Workers

On July 21, 2023, the United States Court of Appeals for the Ninth Circuit affirmed a district court order denying Domino Pizza’s motion to compel arbitration in a putative class action brought by plaintiff Dominos truck...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

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

ArentFox Schiff

US Supreme Court Holds That Airline Cargo Loaders Are Exempt From Arbitration

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The US Supreme Court has held that airline cargo loaders who load and unload cargo from planes that travel across state lines are exempt from the Federal Arbitration Act (FAA) because they belong to a “class of workers...more

Sheppard Mullin Richter & Hampton LLP

United States Supreme Court Rules Certain Airline Employees Exempt From Federal Arbitration Act

On June 6, 2022, a unanimous United States Supreme Court issued another key decision interpreting the Federal Arbitration Act (“FAA”) that will have a significant impact on certain employers going forward...more

Venable LLP

Text, Context, and Canons: Inside a Unanimous Supreme Court Decision

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The end of the Supreme Court's term usually brings divided decisions. But in Southwest Airlines Co. v. Saxon, the whole Court agreed on both the result and the reasoning in a trim 11 pages....more

BakerHostetler

Supreme Court Resolves Whether an Airline Ramp Supervisor Falls Within the Transportation Worker Exemption of the FAA

BakerHostetler on

For years courts have been struggling to determine the proper application of the Section 1 exemption of the Federal Arbitration Act (FAA). See 9 U.S.C. § 1. Now the U.S. Supreme Court has brought some clarity to the analysis....more

Dorsey & Whitney LLP

The Supreme Court - June 6, 2022

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Southwest Airlines v. Saxon, No. 21-309: This case concerns the scope of the Federal Arbitration Act’s (FAA) exemption for certain interstate transportation workers - namely, “seamen, railroad employees, or any other class of...more

Ballard Spahr LLP

U.S. Supreme Court Ruling Denies Arbitration, Ramps Up Litigation

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For the second time in two weeks, the U.S. Supreme Court has ruled against a company seeking to compel individual arbitration of Fair Labor Standards Act (FLSA) collective action claims. In Southwest Airlines Co. v. Saxon,...more

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

Supreme Court of the United States Issues Important Decision on the Federal Arbitration Act

On June 6, 2022, the Supreme Court of the United States ruled that airline cargo loaders are exempt from the Federal Arbitration Act (FAA) under the statute’s “transportation worker” exemption. In Southwest Airlines Co. v....more

Miles & Stockbridge P.C.

Supreme Court Considers the Reach of Workplace Arbitration Agreements

The Supreme Court has recently taken the challenge of assessing the scope and breadth of workplace arbitration provisions under the Federal Arbitration Act (“FAA”) in Viking River Cruises, Inc. v. Moriana, and Southwest...more

Jackson Lewis P.C.

Supreme Court Considers Scope of FAA’s Transportation Worker Exemption

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Do an airline’s ramp workers qualify as “transportation workers” exempt from the Federal Arbitration Act (FAA)? This question is pending before the U.S. Supreme Court in Southwest Airlines Co. v. Saxon (No. 21-309), a...more

Fisher Phillips

Federal Court Rules That Instacart Workers Cannot Escape Arbitration Despite FAA Argument

Fisher Phillips on

A federal district court in Illinois just ruled that a proposed class of gig economy delivery drivers and paid shoppers must individually arbitrate their claims that they were misclassified as independent contractors,...more

Carlton Fields

Ninth Circuit Affirms That Uber Driver Not Engaged in “Foreign or Interstate Commerce” for Purposes of Exemption to FAA

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The Ninth Circuit denied a petition seeking to vacate an order compelling arbitration of an Uber driver’s putative class action. The district court held that rideshare drivers who pick up and drop off passengers at airports...more

Faegre Drinker Biddle & Reath LLP

Ninth Circuit Rules Amazon Drivers Fall Within FAA’s Transportation Worker Exemption

On August 19, the Ninth Circuit delivered the latest guidance in the long-running debate over the Federal Arbitration Act’s (FAA) scope. It held that Amazon delivery drivers can move forward with a nationwide class action —...more

Proskauer - Law and the Workplace

The Employment Law Landscape in 2020

2019 was a busy year for lawmakers across the nation, underscoring the need for employers to remain apprised of all the new laws that will be taking effect in 2020. Below we summarize some of the significant developments...more

Genova Burns LLC

Third Circuit Decision Threatens Rideshare Company’s Right to Arbitrate

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The Third Circuit recently opened the door to exempting Uber drivers from the Federal Arbitration Act (“FAA”). In a precedential decision, the Court of Appeals vacated a District Court’s decision compelling arbitration of an...more

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