Ninth Circuit Holds Warehouse Worker Qualifies As Transportation Worker Under FAA Exemption

Arbitration agreements with warehouse workers and others who play a "direct and necessary role" in the transportation of goods and people may fall within the "transportation worker exemption" to the Federal Arbitration Act (FAA), the U.S. Court of Appeals for the Ninth Circuit held. Ortiz v. Randstad Inhouse Services, LLC, No. 23-55147 (Mar. 12, 2024).

Whether an arbitration agreement is exempt from the FAA is often important because absent the FAA, arbitration agreements are subject to enforcement under state law, and state law can be hostile to arbitration and even preclude enforcement of all or part of an arbitration agreement.

Facts

The plaintiff, Adan Ortiz, worked in a California warehouse receiving products from mostly international locations. Products remained in the warehouse for days or weeks before being shipped to end-use consumers and retailers in various states. Ortiz was not responsible for loading or unloading products from shipping containers