Last-Mile Delivery Drivers May Avoid Arbitration Under Supreme Court Ruling

As online shopping and rapid delivery services continue to reshape the economy, employers increasingly rely on individuals who transport goods for their “last mile,” from warehouses and distribution centers to retail locations and consumers. A recent Supreme Court decision may make it more difficult for employers who operate in the “last mile” arena to enforce arbitration agreements against those drivers.

Summary of The Case

On May 28, 2026, the Supreme Court unanimously held in Flowers Foods, Inc. v. Brock that certain last-mile delivery drivers may qualify for the transportation worker exemption under Section 1 of the Federal Arbitration Act (FAA), even if they do not cross state lines as part of their job or directly interact with vehicles that do. The Supreme Court’s decision resolves a question that has divided lower courts, and it may have significant implications for employers that operate in local delivery networks.