Workers win unanimous SCOTUS decision on arbitration exemption

The Federal Arbitration Act exempts “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce," so those folks are not required to arbitrate their claims.

The latest US Supreme Court case involved two men who owned the rights to distribute baked goods produced and distributed nationwide by Flowers Foods. When the men sued claiming violations of state and federal wage laws, Flowers moved to compel arbitration. The 2nd Circuit held that they were not “transportation workers” exempt from the FAA under §1 on the ground that the §1 exemption was available only to workers in the transportation industry, but that these men were in the bakery industry.

The US Supreme Court reversed in a short unanimous opinion. Bissonnette v. LePage Bakeries (US Sup Ct 04/12/2024) [PDF].

The Court said, "A transportation worker need not work in the transportation industry to fall within the exemption from the FAA provided by §1 of the Act."

Of course, this still leaves open the question of whether the workers (1) are not transportation workers and (2) that they are not “engaged in foreign or interstate commerce” within the meaning of §1 because they deliver baked goods only in Connecticut.