Independent contractors engaged in foreign or interstate commerce in the transportation industry now fall squarely within the Federal Arbitration Act’s Section 1 exclusion.

Dominic Oliveira was employed as an interstate truck driver for New Prime, Inc. under an operating agreement that deemed him to be an independent contractor. Oliveria filed a class action suit, alleging the petitioner denied its drivers lawful wages. New Prime moved to compel arbitration, arguing that its agreement with Oliveira contained a mandatory arbitration agreement and any questions regarding arbitrability should be resolved by the arbitrator. The Supreme Court ruled unanimously that the exceptions set forth in the Federal Arbitration Act, specifically those found in Section 1 for works involved in foreign and interstate commerce, do apply to independent contractors like Oliveira and that, given the language found in Oliveira’s operator agreement, he could not be compelled to arbitrate his dispute. The Court’s ruling only forecloses arbitration under the Federal Arbitation Act; it does not foreclose an employer’s ability to compel arbitration under state arbitration laws. 

^{Case Law Alerts, 2nd Quarter, April 2019}

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