U.S. Supreme Court to Hear Transportation Worker Arbitration Case
The U.S. Supreme Court will hear a case to clarify who qualifies as a transportation worker for purposes of the Federal Arbitration Act (FAA). Supreme Court precedent enforcing class waivers in arbitration agreements subject to the FAA has given businesses an efficient way of resolving disputes on an individual basis. However, the FAA exempts contracts of employment for transportation workers who are engaged in interstate commerce.
In Bissonnette v. Lepage Bakeries Park St., LLC, a case involving franchisees that deliver baked goods, the U.S. Court of Appeals for the Second Circuit held the drivers were not “transportation workers” because they derived a majority of their revenues from the sale of baked goods and not from transportation charges for the movement of goods. If affirmed, drivers for private carriers are likely to be covered by the FAA – a beneficial result.
The Court recently scheduled oral argument in this case for February 20, 2024. Scopelitis attorneys are closely monitoring the case and will provide updates as it progresses toward a decision.
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News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
U.S. Supreme Court to Hear Transportation Worker Arbitration Case
The U.S. Supreme Court will hear a case to clarify who qualifies as a transportation worker for purposes of the Federal Arbitration Act (FAA). Supreme Court precedent enforcing class waivers in arbitration agreements subject to the FAA has given businesses an efficient way of resolving disputes on an individual basis. However, the FAA exempts contracts of employment for transportation workers who are engaged in interstate commerce.
In Bissonnette v. Lepage Bakeries Park St., LLC, a case involving franchisees that deliver baked goods, the U.S. Court of Appeals for the Second Circuit held the drivers were not “transportation workers” because they derived a majority of their revenues from the sale of baked goods and not from transportation charges for the movement of goods. If affirmed, drivers for private carriers are likely to be covered by the FAA – a beneficial result.
The Court recently scheduled oral argument in this case for February 20, 2024. Scopelitis attorneys are closely monitoring the case and will provide updates as it progresses toward a decision.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.