Supreme Court Agrees To Consider Scope Of Transportation Exemption To Federal Arbitration Act

October 23, 2025

What's New

The Supreme Court has agreed to hear Flower Foods, Inc. v. Brock, a case that could clarify whether local delivery drivers who sign arbitration agreements must arbitrate disputes. While the Federal Arbitration Act generally requires courts to enforce such agreements, it exempts transportation workers “engaged in foreign or interstate commerce.” If this exemption includes delivery drivers, state law rather than the FAA will determine whether their arbitration agreements are enforceable.

What It Means

Courts have long debated the scope of the transportation worker exemption, especially in cases involving delivery and ride-share drivers. Appeals courts remain divided, and the Supreme Court now has a chance to resolve this split. The issue often arises when drivers, classified as independent contractors, seek to litigate employment claims in court despite having signed arbitration agreements. A broad interpretation of the exemption would allow more drivers to pursue claims in court, whereas a narrow reading would require arbitration.

What You Should Do

Employers should note ongoing uncertainty: federal courts disagree on the exemption’s reach, so an arbitration agreement with local delivery drivers may not be enforceable in all jurisdictions. The Supreme Court’s decision is expected in the first half of 2026.

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Jan 17, 2024 – A federal court has ruled that California cannot prohibit mandatory arbitration agreements for employment disputes. The ruling blocks enforcement of state law AB 51, allowing employers to require arbitration agreements as a condition of employment.

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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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