By: Ryan McCoy
Seyfarth Synopsis: The Federal Arbitration Act (“FAA”) exempts workers engaged in interstate commerce from enforcement of mandatory arbitration agreements. Uber drivers (and other drivers working in the gig economy) have frequently argued that they fit under this “interstate transportation” exemption in order to avoid arbitration of their claim that they have been
By Lennon B. Haas, Kyle Petersen, and Kevin M. Young
Seyfarth Synopsis: Though it may sound esoteric, the question of whether “last mile” drivers fall within the Federal Arbitration Act’s transportation worker exemption bears tremendous consequence. If they are exempt, they can’t be compelled to arbitrate under the FAA. If they are not
By: Robert S. Whitman and John P. Phillips
Seyfarth Synopsis: Arbitration agreements with class and collective action waivers can help employers limit litigation exposure, especially to wage and hour claims. In recent years, however, in light of the “Me Too” movement, state and federal lawmakers have sought to limit or prohibit employment arbitration. Unlike in
By: Cameron Van and Kyle Petersen
Seyfarth Synopsis: Earlier this year, in New Prime, the Supreme Court decisively held that the Federal Arbitration Act’s § 1 exemption for transportation workers engaged in foreign or interstate commerce applied to independent contractors and employees alike. While New Prime presented a bump in the road to arbitration, a
By: Rachel Hoffer
Seyfarth Synopsis: In 20/20 Communications, Inc. v. Crawford, the Fifth Circuit joined eight other circuits in holding that the availability of class arbitration is a “gateway” issue for courts, not arbitrators, to decide—unless there is “clear and unmistakable language” in the arbitration agreement to the contrary. No circuit court has ruled to
By James M. Hlawek, Shireen Wetmore, Gena Usenheimer, and Richard L. Alfred
Seyfarth Synopsis: Today the Supreme Court issued a 5-4 decision in the Lamps Plus, Inc. v. Varela class action arbitration case. The holding and rationale are important to employers because the Court decisively ruled that class arbitration “fundamentally” changes
By: Ariel Fenster, Ryan McCoy, Steve Shardonofsky
Seyfarth Synopsis: Arbitration of employment claims continues to be a hot topic at the Supreme Court. In a unanimous 8-0 decision yesterday (Justice Kavanaugh recused), the Supreme Court ruled in New Prime Inc. v. Oliveira that non-employee drivers engaged by a transportation company cannot be forced