Blog Posts

The U.S. Department of Labor estimates 56 percent of all nonunion private-sector employees are subject to mandatory arbitration agreements. Many employers use such agreements—and the class action waivers contained therein—to mitigate the risks of class and collective actions. The Federal Arbitration Act (FAA) applies to most arbitration agreements and explicitly provides that such agreements are generally valid and enforceable.

However, “transportation workers” are exempt from the FAA, and as a result, arbitration agreements with transportation workers cannot be enforced under the FAA. Increasingly, plaintiffs’ lawyers are attempting to avoid the enforcement of arbitration agreements signed by their clients by arguing their clients are transportation workers and therefore the signed arbitration agreements cannot be enforced under the FAA.