US Supreme Court Rules 'Last Mile' Drivers Exempt from Arbitration
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TL;DR
- US Supreme Court unanimously affirmed an exemption for local delivery drivers from mandatory arbitration.
- Flowers Foods delivery drivers can pursue workplace disputes in court rather than arbitration.
- The Court held these drivers are considered 'transportation workers' under the Federal Arbitration Act.
- This decision aligns with a prior Tenth Circuit opinion.
Overview
On June 13, 2024, the US Supreme Court unanimously held that independent bakery distributor drivers working for Flowers Foods and its subsidiaries are considered transportation workers under the Federal Arbitration Act (FAA) and are therefore exempt from mandatory arbitration requirements. This allows the drivers, including named plaintiff Angelo Brock, to litigate their workplace disputes in court.
What Happened
Angelo Brock, an independent distributor for Flowers Foods in Colorado, delivers baked goods from a local warehouse to nearby stores.
Although Brock and similar drivers did not cross state lines themselves, they were engaged in the 'last mile' delivery of goods that traveled interstate.
Brock sought to litigate workplace disputes in court, but Flowers Foods cited an arbitration agreement.
Both a federal appellate court and now the US Supreme Court found that these drivers fall within the FAA's transportation worker exemption, meaning their claims may proceed in court rather than being subject to mandatory arbitration.
Context
The Federal Arbitration Act generally allows employers to require arbitration of most workplace disputes, but explicitly exempts 'transportation workers engaged in interstate commerce.'
There has been ongoing litigation over whether drivers who handle only intrastate deliveries of products that have traveled interstate are covered by this exemption.
This decision continues a series of Supreme Court rulings addressing the scope of the FAA's transportation worker exemption.
Why It Matters
- This ruling clarifies the reach of the FAA's exemption for transportation workers, affecting arbitration policies for 'last mile' delivery drivers nationwide.
- Employers in distribution and delivery may need to reassess arbitration agreements for employees classified as transportation workers.
Sources
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Justices Exempt ‘Last Mile’ Drivers From Mandatory Arbitration
news.bloomberglaw.com