The Supreme Court will hear a case concerning the scope of the Federal Arbitration Act’s transportation worker exemption. Its decision in Flower Foods, Inc. v. Brock could settle whether local delivery and ride-share drivers who sign arbitration agreements must arbitrate disputes.
The issue often arises when drivers, classified as independent contractors, seek to litigate employment claims in court even though they signed arbitration agreements. While the Federal Arbitration Act generally requires courts to enforce arbitration agreements, it exempts transportation workers “engaged in foreign or interstate commerce.” Courts have long debated the scope of this exemption, especially in cases involving delivery and ride-share drivers.
Appeals courts remain divided, so an arbitration agreement with local delivery drivers may not be enforceable in all jurisdictions. If the Supreme Court interprets this exemption to include delivery drivers, state law rather than the FAA will determine whether their arbitration agreements are enforceable.
Members of the Center for Workplace Compliance (CWC), our affiliated nonprofit membership association, can read more here.