NJ Ruling Opens State Battles On Transpo Worker Exemption

Law360 (July 16, 2020, 9:22 PM EDT) -- New Jersey transportation companies gained some new leverage in fighting employment class actions after the state Supreme Court reinforced employers' arbitration agreements under Garden State law, even if their workers are exempt from arbitration under a federal law.

The state's highest court ruled Tuesday that the New Jersey Arbitration Act automatically applies to arbitration agreements, even if workers subject to those agreements qualify for the Federal Arbitration Act's so-called transportation worker exemption that would otherwise let them pursue their disputes in court.

In the year-and-a-half since the U.S. Supreme Court's January 2019 decision in New Prime v. Oliveira, transportation workers picked up...

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