SCOTUS Holds That Transportation Worker Need Not Work In Transportation Industry To Qualify For FAA Section 1 Exemption

Dorsey Senior Counsel Richard Silberberg wrote an article published on the College of Commercial Arbitrators blog on April 18, 2024.

"In vacating the Second Circuit’s holding that a worker’s employer must be engaged in the 'transportation industry' for the worker to be exempt under § 1 of the FAA, SCOTUS held in Bissonnette that '[a] transportation worker need not work in the transportation industry to fall within the exemption from the FAA provided by § 1 of the Act.' In so ruling, SCOTUS upheld the argument advanced by the plaintiffs in Bissonnette — commercial truck drivers who transport a bakery company’s goods to its retailers across state lines — that there is nothing in the text of § 1 supporting a requirement that the worker’s employer be engaged in the 'transportation industry.'"

For further observations about the decision read the full article on CCArbitrators.org.