Analysis

Transpo Worker Ruling A Rare Blow To Arbitration Pacts

By Linda Chiem (January 15, 2019, 10:09 PM EST) -- The U.S. Supreme Court's Tuesday ruling that transportation workers, regardless of whether they're employees or independent contractors, are exempt from the Federal Arbitration Act chipped at the shield some employers have long relied on to insulate themselves from legal attacks, experts say.

The high court, which in recent years has blessed arbitration agreements in a series of decisions, handed workers a rare win with a unanimous 8-0 decision broadly interpreting the meaning of "contracts of employment" for the purposes of a Federal Arbitration Act exemption covering transportation workers.

The ruling came in a case involving trucking company New Prime Inc. and individual trucker...

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