Key Highlights
The U.S. Supreme Court unanimously held that the FAA’s transportation worker exemption may cover last-mile delivery drivers who deliver goods that originated out of state. The exemption can apply even when the driver’s own route is entirely intrastate.
The ruling may narrow the enforceability of arbitration agreements for employers in logistics, delivery, retail and e-commerce operations. It is likely to increase challenges by workers tied to interstate supply chains.
Employers should review arbitration agreements covering drivers, couriers and delivery personnel in light of the Court’s continuous-movement analysis. They should also assess whether affected worker groups may require alternative dispute resolution provisions under state law.
In Flowers Foods, Inc. v. Brock, the United States Supreme Court issued a significant decision that will impact employers who utilize arbitration agreements for delivery drivers. In a unanimous ruling, the Court held that the… Read the complete article here...
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