Overview
- The Supreme Court, in a unanimous opinion by Justice Neil Gorsuch, held that a worker who performs only intrastate “last‑mile” deliveries can qualify for the Federal Arbitration Act’s Section 1 transportation‑worker exemption.
- The Court rejected Flowers Foods’ proposed bright‑line rule that a worker must cross state lines or touch an interstate vehicle to qualify, saying intrastate legs can be part of a continuous interstate journey.
- The decision affirmed the lower courts’ rulings in Angelo Brock’s case and left several key questions unanswered, including whether B2B or franchise contracts count as “contracts of employment,” when title transfer ends interstate movement, and how to define the journey’s endpoint.
- Employers that use local delivery networks should expect immediate, fact‑by‑fact litigation and should review arbitration clauses and operational practices because the ruling increases the chance workers can litigate class or wage claims in court rather than in arbitration.
- The ruling, issued May 28, 2026, continues a recent Supreme Court trend widening Section 1’s reach and signals that lower courts will shape the exemption’s practical boundaries through follow‑on cases.