FAA Transportation Workers Arbitration Exception After Bissonnette: Who is Engaged in Foreign or Interstate Commerce?

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Commercial Law
- event Date
Monday, October 21, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will discuss the transportation worker exception to the Federal Arbitration Act (FAA), specifically how lower courts are applying Bissonnette v. LePage Bakeries Park St. L.L.C., 601 U.S. ___ (2024), and the circuit split over "last mile" transportation workers. The panel will also address how to structure arbitration agreements that may apply to transportation workers who are not covered under the purview of the FAA.
Faculty

Mr. Core represents motor carriers, forwarders, and logistics companies in regulatory compliance, contract reviews, and owner-operator arrangements. He also defends businesses in a large variety of enforcement cases, including TSA air-cargo and cargo-screening investigations and FAA dangerous-goods investigations. Mr. Core also regularly counsels and speaks on owner-operator arrangements, challenges to independent-contractor classification, and compliance with the Federal Leasing Regulations. He is an experienced litigator who has tried several commercial cases, including multiple jury trials, and participated in the defense of class actions against motor carriers involving allegations of Federal Leasing Regulations violations and challenges to independent-contractor status.

Ms. Devane advises and represents employers in a broad range of employment matters. She devotes a substantial amount of her practice to drafting arbitration agreements and works closely with clients to rollout employee agreements and policies. Ms. Devane regularly appears in California federal and state courts, as well as before the Equal Employment Opportunity Commission, the Department of Fair Employment and Housing, the Division of Labor Standards Enforcement, and the Workers' Compensation Appeals Board. She has provided pro bono representation and assistance in death penalty cases and served as a housing court volunteer to low-income individuals.

Mr. Sharma’s practice focuses on state and federal legislative and regulatory advocacy work and an array of regulatory compliance issues. From the Firm’s D.C. office, he leads legislative support initiatives and provides a legal liaison function to Firm clients seeking transportation and logistics industry national and state association outreach. Mr. Sharma spearheads outreach efforts within the Firm’s network of industry leaders to align efforts to achieve legislative outcomes that protect the future of the transportation industry. He also counsels transportation clients on the complexities of arbitration in light of the Federal Arbitration Act’s transportation worker exemption and the challenges of complying with clean air and sustainability mandates. Mr. Sharma frequently presents on independent contractor issues, motor carrier regulations, and legislative and regulatory developments to businesses and organizations across the country. He is active in a number of national transportation trade associations and has served as outside counsel to the National Home Delivery Association, the National Tank Truck Carriers, and the Truck Rental and Leasing Association.
Description
Arbitration agreements--and the class action waivers in them--are an important dispute-resolution tool for employers in the transportation industry. However, the FAA’s otherwise broad reach does not extend to seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.
In Bissonnette v. LePage, the Supreme Court may have increased the number of workers exempt under the FAA when it held that an employee can be an exempt transportation worker even if employed by a company that is not in the transportation industry. The FAA simply refers to workers "engaged in foreign or interstate commerce," which the Court noted means they must play a direct and "necessary role in the free flow of goods" across borders.
Bissonnette leaves for the lower courts to wrestle with what this means. Many predict protracted and expensive discovery into worker job responsibilities. Bissonnette also left open a circuit split over how to classify "last mile" or "last leg" drivers who never leave their states but deliver goods or packages that arrive across state lines.
Listen as this program reviews the transportation worker exception to the FAA and how lower courts and companies are responding to the questions Bissonnette did not answer.
Outline
- Overview of transportation worker exemption
- Analysis Bissonnette v. LaPage Bakeries
- Lower court analysis of "engaged in foreign or interstate commerce"
- Last mile drivers and current circuit split
- Recent cases
- Strategies for employers
Benefits
The panel will review these and other key issues:
- What is a direct and necessary role in the free flow of goods across borders?
- Can arbitration agreements be enforced against exempt workers under state law?
- Are class action waivers valid for exempt employees even if arbitration agreements are not?
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