Clarifying the FAA’s Transportation Exemption

A couple of days ago, SCOTUS issued its decision in Bissonnette v. LePage Bakeries Park St., LLC (Docket No. 23-51, 601 U.S. ___), clarifying the issue of whether or not transportation workers need to formally work in the transportation industry in order to be exempt from the provisions of the Federal Arbitration Act.

 Previously, there had been confusion arising out of decisions reached in various circuit courts, as well as prior SCOTUS decisions.  In Bissonnette, SCOTUS unanimously ruled that the FAA exempts classes of workers who are actively engaged in interstate transportation, even if the individuals are not employed by a company in the transportation industry. This decision overruled the 2nd Circuit which had determined that, since Bissonnette and his co-plaintiff were delivery truck drivers for the company that makes Wonder Bread, they were in the bakery industry.  SCOTUS basically said it did not matter.

However, SCOTUS did note that its decision would be inapplicable if it were determined that the transportation in question was intrastate and not interstate.  So, potentially, SCOTUS may have swapped one point of controversy for another.  Time will only tell.