The United States Supreme Court has affirmed an exemption under the Federal Arbitration Act (FAA) specifically for “last-mile” drivers in the recent Flowers Foods v. Brock decision. This ruling clarifies that drivers who participate in the final delivery stage of goods on an interstate journey, but do not themselves cross state lines, are protected from the FAA’s mandate to arbitrate disputes.
Justice Neil Gorsuch, writing for a unanimous Court, emphasized that the statutory language encompasses workers engaged in interstate commerce, which includes those who take part in the delivery of goods involved in such commerce, even if their role does not involve crossing state lines or handling vehicles that do. This interpretation departs from the employer’s argument, which sought to limit the exemption’s availability to workers directly crossing state boundaries or interacting with interstate-transport vehicles.
In examining the historical precedents, Gorsuch recalled multiple instances from the late 19th and early 20th centuries, where transportation activities confined within a state were deemed part of interstate commerce under the Constitution’s commerce clause. These precedents were instrumental in shaping yesterday’s decision.
The decision may not significantly alter the landscape given that it upholds a lower court’s judgment. However, it signals to lower courts to apply careful consideration before narrowly construing the arbitration exemption for similar cases. For the legal community, especially those engaged with arbitration and interstate commerce issues, Gorsuch’s ruling might serve as a pivotal reference in future cases, given its reliance on both statutory interpretation and historical precedent. More detailed information can be found on SCOTUSblog.