Supreme Court Unanimously Rules Transportation Workers Can Qualify for FAA Exemption Regardless of Interstate Travel

The U.S. Supreme Court unanimously ruled in its May 28 decision in *Flowers Foods, Inc. v. Brock* that transportation workers can qualify for the Federal Arbitration Act's (FAA) exemption, even if their jobs do not involve crossing state lines. This decision, reported on June 10, 2026, strengthens the ability of last-mile delivery drivers and similar intrastate workers to avoid binding arbitration, rejecting a proposed bright-line rule requiring interstate travel. The ruling may lead to increased litigation over the scope of the FAA's transportation worker exemption.

Context

The Federal Arbitration Act traditionally allows employers to mandate arbitration for disputes, limiting employees' access to court. The case of *Flowers Foods, Inc. v. Brock* challenged the interpretation of who qualifies as a transportation worker under this act. The Supreme Court's unanimous decision clarifies that the exemption applies regardless of whether workers cross state lines.

Why it matters

This ruling is significant as it broadens the protections for transportation workers under the Federal Arbitration Act. By allowing workers who do not engage in interstate travel to qualify for the exemption, it empowers them to pursue legal claims outside of arbitration. This decision may influence labor rights and working conditions for many employees in the transportation sector.

Implications

The decision could lead to increased litigation costs for companies that rely on arbitration clauses. Transportation workers, particularly those in last-mile delivery, may gain more leverage in negotiations regarding pay and working conditions. This ruling may also encourage other sectors to seek similar exemptions, potentially reshaping labor relations across various industries.

What to watch

In the near term, the ruling may prompt more transportation workers to file lawsuits rather than settle disputes through arbitration. Legal experts will be monitoring how lower courts interpret this decision in future cases. Additionally, employers may need to reconsider their arbitration policies in light of this expanded exemption.