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ARTICLE · 06 JUNE 2026

Krimpets, Commerce, And Arbitration: The Supreme Court’s Latest FAA § 1 Decision

Aceris Law
Aceris Law
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Aceris Law

Aceris Law

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The U.S. Supreme Court has clarified that transportation workers who handle goods on intrastate routes may still qualify for the Federal Arbitration Act's employment exemption if their work forms part of a continuous interstate journey. This unanimous decision resolves a circuit split and significantly impacts how arbitration agreements apply to last-mile delivery workers and local distributors who never cross state lines but play essential roles in moving goods between states.

United StatesLitigation, Mediation & Arbitration

On 28 May 2026, the United States Supreme Court issued its unanimous decision in Flowers Foods, Inc. v. Brock, further clarifying the scope of the Federal Arbitration Act (“FAA”) § 1 exemption for transportation workers.

The FAA requires courts to enforce private arbitration agreements. However, § 1 of the FAA provides an important exception for disputes involving the contracts of employment of, inter alia, any “class of workers engaged in foreign or interstate commerce”.1

The case addressed whether a worker may qualify as part of such a “class of workers engaged in […] interstate commerce” even when he or she never crosses state lines and never interacts with vehicles that do. The Court answered yes, holding that a worker who transports goods on an intrastate leg of a continuous interstate journey may fall within the § 1 exemption.

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