The Federal Arbitration Act (FAA) turns 100 years old today.
In enacting the FAA on February 12, 1925, Congress eliminated
the power of the states to require that claims be resolved in court
when contracting parties instead agree to resolve their claims in
arbitration. The FAA's purpose was to reverse longstanding
judicial hostility to arbitration agreements, and to place
arbitration agreements on equal footing with other contracts under
the law.
As we celebrate the FAA's 100th birthday, we highlight three
key areas in which the FAA's scope and application have come
under scrutiny in recent years.
The Scope Of The Transportation Worker Exemption Remains
Unclear
The FAA does not apply to employment contracts of seamen,
railroad employees, and workers engaged in foreign or interstate
commerce. The scope of this so-called transportation worker
exemption has been a hotbed for litigation in recent years, with
the U.S. Supreme Court addressing the issue in
