Justices Validate Arbitration Exemption for “Last-Mile” Drivers

Justices validate arbitration exemption for “last-mile” drivers

Yesterday’s decision in Flowers Foods v. Brock held that an exemption from the Federal Arbitration Act for interstate transportation workers extends to “last-mile” drivers who don’t themselves cross state lines, even though the goods they are delivering are on an interstate journey. That holding protects them from the FAA’s requirement that they litigate disputes with their employers in arbitration as opposed to a court.Justice Neil Gorsuch’s op…

Supreme Court sides with truck driver in arbitration dispute

“The Federal Arbitration Act requires courts to enforce many private arbitration agreements. But not all,” justices concluded.

Supreme Court Sides With Delivery Drivers in Dispute Over Arbitration Agreements

The U.S. Supreme Court on May 28 unanimously ruled that local last-mile delivery drivers, including those who never cross state lines, may qualify for an exemption from mandatory arbitration under a federal law. A last-mile delivery driver is one who manages the final segment of the shipping process, moving goods from a distribution center directly to a retail store or a customer’s door. The Federal Arbitration Act requires that arbitration clau…

Supreme Court Clarifies FAA Exemption for “Last-Mile” Drivers

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US Supreme Court’s ‘Unfavorable’ Independent Contractor Decision May Be ‘Favorable’ After All for Limiting Scope of Arbitration Exemption Under the FAA

On its face, the unanimous decision issued today by the U.S. Supreme Court on the scope of the interstate transportation exemption from arbitration under the Federal Arbitration Act (FAA) may seem like an unfavorable outcome for manufacturers using distributors to deliver products to customers such as retail stores. The Court’s rather short opinion, authored by Justice Neil Gorsuch, clarified that independent contractors (ICs) and employees that…