News & Analysis as of

Federal Arbitration Act Exemptions 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. 
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

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,...

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

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

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

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