The US Supreme Court delivered a unanimous decision, rejecting an industry-based test for determining exemption from mandatory arbitration under the Federal Arbitration Act’s transportation worker carveout. Here’s a breakdown of the key points:

Want to know if you’re earning what you deserve? Find out with LawCrossing’s salary surveys.

Clarification on Transportation Worker Exemption

In a significant ruling, the court clarified that workers falling under the interstate transportation jobs exemption can avoid mandatory arbitration, irrespective of whether their employer operates directly in the transportation industry. This decision resolves a circuit split and provides essential clarity on the application of the exemption.

Whether you’re a recent law school grad or an experienced attorney, BCG Attorney Search has the job for you.

No Industry Requirement Imposed

Chief Justice John Roberts, writing for the court, emphasized that Section 1 of the FAA does not impose an industry requirement for transportation workers to be exempt from arbitration coverage. The court overturned the Second Circuit’s decision, which compelled arbitration based on the argument that the drivers worked in the bakery industry.

Stay up-to-date without the overwhelming noise. Subscribe to JDJournal for a curated selection of the most relevant legal news.

Implications for Gig Economy

The ruling holds substantial implications, particularly for the gig economy. By disallowing companies from invoking arbitration agreements to bypass court proceedings in employment classification cases, the decision could potentially disrupt the business model of such companies.

Knowledge is power, and knowing your earning potential is no exception. Check out LawCrossing’s salary surveys to gain valuable insights.

Revival of Class Action Lawsuit

Friday’s decision revives a proposed class action lawsuit against Flowers Foods, alleging misclassification of drivers as independent contractors. The drivers, delivering products under distribution agreements with Flowers Foods subsidiaries, seek legal redress for wage and hour violations.

Make informed decisions in real-time. Subscribe to JDJournal and be in the know with the latest legal updates.

Legal Representation and Response

The workers are represented by Gupta Wessler LLP and Lichten & Liss-Riordan PC, while Flowers Foods is represented by Jones Day and Ogletree, Deakins, Nash, Smoak & Stewart PC. Representatives for the parties have not immediately responded to requests for comment.

Whether you’re a recent law school grad or an experienced attorney, BCG Attorney Search has the job for you.

Case Details

The case, styled as Bissonnette v. LePage Bakeries Park St. LLC, marks a significant development in the interpretation of arbitration exemptions for transportation workers engaged in interstate commerce.