Supreme Court Rules on FAA Exemption

The Federal Arbitration Act (FAA) requires courts to enforce written arbitration agreements for most commercial and employment contracts but provides an exemption for employment contracts of transportation workers who are “engaged in foreign or interstate commerce.” If the exemption applies, an employer usually cannot use the FAA to force the matter out of court and into arbitration. In a unanimous decision, the U.S. Supreme Court said that drivers who operate on an intrastate basis can qualify for the exemption because they are part of a business’ interstate journey (“last mile drivers”). These workers don’t have to cross state lines to be treated the same as those driving interstate. They can sue in court and don’t have to use arbitration. #IdeaoftheDay

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