Transportation Worker Arbitration Exemption Hinges On Driver’s Job Duties Rather Than Industry, Supreme Court Rules

April 22, 2024

What's New

The Federal Arbitration Act’s transportation worker exemption can apply to workers outside the transportation industry, depending on their job duties, a unanimous U.S. Supreme Court ruled April 12 in Bissonnette v. LePage Bakeries. The Justices remanded a case involving drivers who delivered baked goods so the lower courts could decide whether they could sue in court for alleged state and federal employment law violations or whether they had to arbitrate their complaints under their employer’s mandatory arbitration agreement. The opinion noted that determining whether a particular employer is in the transportation industry could require extensive discovery, which would make FAA litigation slower and more costly.

What It Means

This case clarifies that the exemption’s applicability depends on the nature of the worker’s work rather than the nature of the employer’s business. The ruling leaves open the exemption’s applicability to warehouse workers and last-mile delivery drivers.

Employers should be aware that the FAA’s exemption may apply to some of their employees, based on their job duties, even if the employer is not in the transportation industry. Therefore, some employees in non-transportation industries may be able to litigate employment issues even if their workplace uses an arbitration agreement.

What You Should Do

CWC members that need advice can consult our staff through MemberAssist at [email protected].

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Transportation Worker Arbitration Exemption Hinges On Driver’s Job Duties Rather Than Industry, Supr

Apr 22, 2024 – On April 12, 2024, the U.S. Supreme Court ruled in Bissonnette v. LePage Bakeries that the FAA’s transportation worker exemption can apply based on job duties, not industry, allowing some non-transportation workers to bypass arbitration.

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