Plain-English summary
FAA exemption covers transportation workers even if they don't work in a transportation company
In Neal Bissonnette v. LePage Bakeries, the Court unanimously held that the Federal Arbitration Act's exemption for contracts of employment of workers "engaged in foreign or interstate commerce" applies to a worker who performs transportation-related tasks even if the employer is not in the transportation industry. The case was vacated and remanded to the Second Circuit for further proceedings consistent with the Court's interpretation.
Why this matters
This decision clarifies who can avoid FAA-driven arbitration: employees who actually perform transportation or interstate-commerce functions can fall outside the FAA's reach even if their employer isn’t a transportation company. That affects employees' ability to keep disputes in court instead of being forced into arbitration.
Who may feel it
- Employees who perform transportation or interstate-commerce tasks (e.g., drivers, couriers, some logistics workers)
- Employers who are not in the transportation industry but employ workers who move goods or people across state lines
- Plaintiffs and defendants in employment disputes involving arbitration clauses
- Labor lawyers, consumer advocates, and businesses that use arbitration agreements
Key questions
- Does the FAA §1 exemption apply based on the worker’s duties (i.e., whether the worker is engaged in interstate commerce) or based on whether the worker’s employer is a transportation company?