trucking

Supreme Court Backs Truck Driver in Arbitration Fight Against Flowers Foods

The Supreme Court ruled unanimously against Flowers Foods in a wage dispute with a truck driver. The justices determined that intrastate final-mile delivery workers cannot be forced into arbitration under the Federal Arbitration Act's transportation worker exemption.

The Court rejected the baked goods manufacturer's argument that drivers must cross state lines to qualify for the exemption. Instead, it focused on whether workers participate in the overall interstate movement of goods, rather than applying a geography-based standard.

Justice Neil Gorsuch wrote that while the FAA generally requires enforcement of private arbitration agreements, exemptions exist for certain workers. The decision means manufacturers cannot automatically move wage and contract disputes involving transportation workers into arbitration proceedings, potentially exposing companies to courtroom litigation over compensation claims.