On May 28, 2026, the Supreme Court of the United States held that workers who locally deliver goods that originate from other states may qualify for exemption from the Federal Arbitration Act (FAA) for transportation workers “engaged in … interstate commerce,” even if they do not cross state lines or interact with vehicles that do.
Quick Hits
The Supreme Court held that delivery drivers who deliver goods originating from out of state may fall under the FAA’s exemption for certain transportation workers “engaged in … interstate commerce,” even if they do not cross state lines or interact with vehicles that do.
The decision is the latest in a series of Supreme Court rulings in recent years interpreting the transportation worker exemption in the FAA.
While a transportation worker is exempt from the FAA, an arbitration agreement with such a worker nonetheless may be enforceable under state law.
Employers may want to review (1) the extent to which they have workers who might be considered… Read the complete article here...
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