Contract of Employment Under FAA Not Limited to Employee-Employer Relationships

Federal Arbitration Act § 1 does not cover “contracts of employment” with “workers engaged in foreign or interstate commerce.” Dominic Oliveira and a group of other drivers relied on this exception when New Prime Inc., an interstate trucking company, sought to compel arbitration in their claim for owed wages. The Supreme Court determined § 1’s  “contract of employment” applies broadly to any agreement to perform work. This decision could have far-reaching implications for arbitration agreements between owner-operators and trucking companies such as New Prime. Read more about the case here.