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Supreme Court: Interstate Transport Companies’ Independent Contractor-Drivers are Exempt from FAA

In New Prime, Inc. v. Oliveira, the U.S. Supreme Court held that the Federal Arbitration Act’s (FAA) Section 1 exemption applies to transportation workers, regardless of whether they are classified as independent contractors or employees. No. 17-340 (Jan. 15, 2019).

End of the Road: SCOTUS Ruling Means Many Transportation Workers Are Now Exempt From Arbitration

In a unanimous 8-0 decision, the Supreme Court ruled today that federal courts can’t force interstate transportation workers—including contractors—into arbitration, ruling that the Federal Arbitration Act’s Section 1 exemption for these workers is a threshold question for the court to resolve, not the arbitrator. Perhaps more importantly, the Court also applied the Section 1 “contract of employment” exemption from the FAA to include not only interstate transportation workers with employment agreements, but also to those interstate transportation workers with independent contractor agreements (New Prime Inc. v. Oliveira).

What Can Employers Expect in 2019?

Despite the current U.S. government shutdown, many aspects of the federal government continue to operate, including the federal court system. This Alert highlights some of the legal, legislative and administrative developments that may impact employers in 2019.

Federal Government Shutdown Effect on Employers

The U.S. Antideficiency Act calls for a partial government shutdown when Congress fails to appropriate annual funds to agencies. As Congress and President Trump cannot agree on appropriations spending, the U.S. government is in the midst of the longest shutdown in U.S. history, which began as of 12:01 on Saturday, December 29, 2018.

Top 10 Employer Resolutions for 2019

Now that 2019 is underway, many of your employees may be making resolutions to improve their lives in various ways, but resolutions are something that employers (and HR professionals in particular) should also be contemplating.

8 Secrets to Preparing a Successful Job Description

Developing and maintaining clear, concise and informative job descriptions is a significant part of the recruiting and hiring process.

Supreme Court Rules Independent Contractor Truck Driver Not Required to Arbitrate Wage Claim

Executive Summary: In New Prime Inc. v. Oliveira, the U.S. Supreme Court held today that the Federal Arbitration Act’s (FAA) exclusion of certain “contracts of employment” from the Act’s coverage applies to transportation worker independent contractors. In its holding, the Court did not define who constitutes a transportation worker under the FAA.

End of the Road: SCOTUS Ruling Means Many Transportation Workers Are Now Exempt From Arbitration

In a unanimous 8-0 decision, the Supreme Court ruled today that federal courts can’t force interstate transportation workers—including contractors—into arbitration, ruling that the Federal Arbitration Act’s Section 1 exemption for these workers is a threshold question for the court to resolve, not the arbitrator. Perhaps more importantly, the Court also applied the Section 1 “contract of employment” exemption from the FAA to include not only interstate transportation workers with employment agreements, but also to those interstate transportation workers with independent contractor agreements (New Prime Inc. v. Oliveira).

Rare Win for Workers in Supreme Court Arbitration Case

The Supreme Court has handed a rare victory to workers in a case involving a mandatory arbitration provision. In New Prime Inc. v. Oliveira, the Court ruled unanimously that while a court's authority to compel arbitration under the Federal Arbitration Act (FAA) may be considerable, it isn't unconditional and does not extend to all private employment contracts.

Supreme Court of the United States Upholds Bar to Arbitration for Interstate Driver

On January 15, 2019, the Supreme Court of the United States held that the Federal Arbitration Act (FAA) did not apply to wage claims brought by an interstate truck driver, even though the plaintiff was classified as an independent contractor.
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