Truck Driver Employees U.S. Supreme Court Says Interstate Commerce Drivers May Not Have to Arbitrate
Truck Driver Employees U.S. Supreme Court Says Interstate Commerce Drivers
May Not Have to Arbitrate
The U. S. Supreme Court ruled that employee truck drivers (and yes, most drivers are employees and not independent contractors if they are controlled by the employer) may avoid previously signed arbitration agreements when litigating employment disputes. (Flower Foods Inc. et al v. Angelo Brock, 608 U.S. ___ (2026), U.S. Supreme Court Case No. 24-935.) The US Supreme Court has almost consistently upheld arbitration agreements that are fully disclosed, signed and not coerced. But now, in a case concerning the Federal Arbitration Act’s (“FAA”) interstate commerce clause (9 U.S.C. §1), the U.S. Supreme Court said that despite drivers NOT crossing state lines, they may be the “last-mile” transportation worker in the interstate commerce movement of goods. The Court decided that “interstate commerce” includes the entire interstate transportation journey of goods, which could include a wholly intrastate leg. It reasoned that workers on these intrastate legs play “a direct, active, and necessary part” in the interstate journey.
Even the FAA generally requires courts to enforce privately agreed upon arbitration agreements but under the FAA’s interstate commerce clause, workers “engaged in…interstate commerce” are exempt from being forced to arbitrate their employment claims. So, the question for the court was whether transportation workers who never drive across state lines, or interact with vehicles that do, fall within the “interstate commerce” exemption. The answer for the Court: yes.
The Court painfully analyzed definitions of “engage” and “interstate commerce” at the time of the FAA’s enactment and found that neither definition required “cross-or-tag” conduct. It also considered several historical cases that interpreted the breadth of the U.S. Constitution’s Commerce Clause as those cases interpreted similar language to the FAA’s interstate commerce clause.
So, for employers, drivers who signed arbitration agreements and sue, they would still have to prove that they engage in interstate commerce. Employers may be able to compel arbitration by disputing the evidence put forth by these workers.
Otherwise, those arbitration agreements with driver employees may not be enforceable.
Please let us know if we can help you: Epps & Coulson, LLP: Dawn – dawn@eppscoulson.com.
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