News & Analysis as of

Exemptions Supreme Court of the United States

Venable LLP

Supreme Court Grants Cert to Decide the Burden of Proof for FLSA Exemptions

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On June 17, 2024, the U.S. Supreme Court granted certiorari in E.M.D. Sales, Inc. v. Carrera, adding it to their docket for the 2024-2025 term. This case will finally resolve a split between the U.S. Circuit Courts of Appeal...more

Sheppard Mullin Richter & Hampton LLP

New SCOTUS Case Could Make Fair Labor Standards Act Claims More Difficult for Employers to Defend

The Supreme Court will soon hear a wage and hour case with massive implications for employers defending claims under the Fair Labor Standards Act (“FLSA”). Depending on the outcome, the high court’s decision could make it far...more

Proskauer - Law and the Workplace

SCOTUS Will Determine Employers’ Burden of Proof to Establish FLSA Exemptions

On June 17, 2024, the U.S. Supreme Court announced that it will tackle a 6-1 circuit split and decide an important wage and hour issue for employers: what burden of proof an employer must satisfy to demonstrate that its...more

Parker Poe Adams & Bernstein LLP

Supreme Court Accepts Review of Employer's Burden for Claiming FLSA Exemptions

Under the Fair Labor Standards Act, employers bear the burden of proving the applicability of an exemption from overtime and/or minimum wage requirements. Earlier this year in E.M.D. Sales Inc. v. Carrera, the Fourth Circuit...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

Constangy, Brooks, Smith & Prophete, LLP

Major League Baseball loosens non-player labor market

Open for negotiations. Since the U.S. Supreme Court decided in the Federal Baseball case of 1922 that baseball was not interstate commerce, Major League Baseball has enjoyed an exemption from antitrust law. The Supreme...more

Venable LLP

Supreme Court Considers Whether to Expand Constitutional Takings to Legislative Development Fees

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When George Sheetz planned to build an 1800-square-foot manufactured home on his California property, he could hardly have thought his routine permit request would end up at the U.S. Supreme Court. But when the County of El...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

Sheppard Mullin Richter & Hampton LLP

Supreme Court Clarifies a “Day-Rate” Does Not Meet the FLSA “Salary Basis” Test, Even for Highly Compensated Employees

The Fair Labor Standards Act of 1938 (“FLSA”) created the right to a minimum wage and overtime pay. The FLSA also provides exemptions to overtime pay requirements for certain employees. Under the “bona fide executive”...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

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

Fox Rothschild LLP

Supreme Court Will Decide Whether the Highly Compensated Exemption Applies to $200,000 Per Annum Worker On A Day Rate—I Can’t...

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This is a day I have been waiting for. The Supreme Court has decided to take on a case in which it will decide whether someone earning more than $200,000 per year, albeit paid on a day rate, can nonetheless meet the FLSA test...more

White and Williams LLP

Pennsylvania Superior Court: No Creditor Protection for Inherited IRAS

Under longstanding Pennsylvania law, retirement savings vehicles like individual retirement accounts (IRAs), 401(k) and 403(b) accounts, pensions, and employee stock ownership plans (ESOPs) are generally exempt from creditor...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

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