On June 6, 2022, the Supreme Court unanimously affirmed a Seventh Circuit decision construing section 1 of the Federal Arbitration Act, also known as the “transportation-worker exemption.” The decision was a disappointment for WLF, which filed an amicus brief in the case arguing that because the plaintiff in this case—a ramp agent supervisor for Southwest Airlines—does not physically transport goods interstate or even supervise others who do, she falls outside the section 1 exemption. Although some judge-made tests purport to expand the exemption beyond those actively engaged in the interstate transportation of goods, WLF argued that these contrived standards defy statutory text and context, produce inconsistent results, and serve no end set forth by Congress. Fortunately, the Court carved out other industries from its narrow holding and rejected the plaintiff’s argument that virtually all airlines workers are covered by the exemption.
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