John Amabile and Debbie Edney wrote an article for Industry Today about how a case argued before the U.S. Supreme Court could significantly affect when manufacturers and other employers can enforce arbitration clauses in their employment and worker-classification agreements.

"The court is wrestling with the question of whether 'last mile' delivery workers — those who deliver goods locally and do not cross state lines — are nonetheless covered under the Federal Arbitration Act’s exemption for workers 'engaged in foreign or interstate commerce'" they wrote. "During oral argument in Flowers Foods Inc. v. Brock, the court’s questions were focused on whether the exemption status under the FAA turns on a worker’s functional role in the free flow of goods across borders or whether workers are required to cross borders themselves to benefit from the exemption."

"While the justices' questions suggested they were inclined to rule against employers in this case, they also appeared challenged by exactly how to define the type of worker that falls under the FAA exemption" they continued. "This case comes on the heels of SCOTUS’s ruling in Bissonnette v. LePage Bakeries Park St., another case examining the FAA’s exemption provisions from April 2024. In Bissonnette, the court rejected an industry-focused path to exclude workers from the exemption, which the justices were concerned would breed more litigation."

Click here to read the full article: SCOTUS Last-Mile Case May Weaken Arbitration 

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