News & Analysis as of

Transportation Industry Interstate Commerce

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

BakerHostetler

5th Circuit: Motor Carrier Act Applies to Intrastate Transport of Goods in the Flow of Interstate Commerce

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The Fair Labor Standards Act (FLSA) requires that employers pay certain employees one-and-a-half times their regular rate of pay for any hours they work over 40 in a workweek. There are, however, several exemptions from the...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

Fox Rothschild LLP

In 2024, The Need To Take Pot Across State Lines Is Not A Crime But A Necessary Prerequisite For Application Of the Motor Carrier...

Fox Rothschild LLP on

In the movie “Blow,” Johnny Depp complains to the Judge about to sentence him for interstate transportation of marijuana that all he did was take some vegetation across an imaginary line. The Judge did not listen. In a...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

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

Fox Rothschild LLP

Interstate Commerce And The Motor Carrier Exemption: The Doctrine Of Practical Continuity

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I am a big student of the FLSA motor carrier exemption and have handled many such cases. I often find that a big obstacle for the employer claiming the exemption is to prove that the drivers are 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

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

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

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

Jackson Lewis P.C.

FAA’s Transportation Worker Exception Covers Airline Ramp Agents, U.S. Supreme Court Holds

Jackson Lewis P.C. on

Individuals employed as ramp workers who frequently handle cargo for an airline are “transportation workers” exempt from the Federal Arbitration Act (FAA), the U.S. Supreme Court has held. Southwest Airlines Co. v. Saxon, No....more

Woods Rogers

Carmack Preemption – Brentzel v. Fairfax Transfer& Storage, Inc.

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In a recent unpublished Fourth Circuit decision, Brentzel v. Fairfax Transfer& Storage, Inc., the broad preemptive force of the Carmack Amendment was reiterated and held sufficient to preempt a plaintiff’s state law tort...more

Jackson Lewis P.C.

U.S. Supreme Court to Consider Whether Airline Ramp Worker Meets FAA Transportation Worker Exemption

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Do an airline’s ramp workers qualify as “transportation workers” exempt from the Federal Arbitration Act (FAA)? The U.S. Supreme Court has granted an airline’s petition for review to resolve this question. Southwest...more

Epstein Becker & Green

Ninth Circuit Conclusion That Amazon Delivery Drivers Don’t Need To Arbitrate Their Claims Under FAA’s “Transportation Worker”...

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Given the ever increasing number of wage-hour class and collective actions being filed against employers, it is no surprise that may employers have turned to arbitration agreements with class and collective action waivers as...more

BakerHostetler

Another Court Rules on When Ride-Sharing Drivers Are Exempt From Arbitration

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In this time of concern regarding the COVID-19 pandemic, there are other challenges still confronting companies. One involves the standard for enforcing arbitration agreements involving transportation workers. Or, stated...more

Epstein Becker & Green

Federal Court Issues Eleventh-Hour TRO to Enjoin Enforcement of California’s Controversial New Independent Contractor Law for...

On January 1, 2020, California’s new independent contractor statute, known as AB 5, went into effect.  The law codifies the use of an “ABC” test to determine if an individual may be classified as an independent contractor....more

Holland & Knight LLP

Railroads Seek to Avoid a Patchwork Quilt of Regulatory Requirements

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• The Clean Water Act imposes permitting obligations on "point sources." • Should those obligations apply to railroad cars, which move freely from state to state? • The U.S. railroad industry has asked the Surface...more

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