Case Law Update: Arbitration

Can a delivery driver who never crosses state lines be exempt from arbitration? The U.S. Supreme Court is tackling this "last mile" question in Flower Foods, Inc. v. Brock, a case that could redefine the "unbroken stream of interstate commerce" for transportation workers. 

Flower Foods, Inc. v Brock (U.S. October 20, 2025)   

The U.S. Supreme Court agreed to hear the case of Flower Foods, Inc. v. Brock to determine whether local “last mile” delivery drivers - who never cross state lines but deliver products that have crossed state lines – are exempt from arbitration under FAA’s transportation worker exception.

The Federal Arbitration Act (“FAA”) contains an exception to arbitration enforcement in arbitration policies applicable to any “class of workers engaged in foreign or interstate commerce.” 9 U.S.C §1. 

In the 2024 case Bissonnette v LePage Bakeries Park St., the Court held that to be exempt from the FAA, a transportation worker need only show that he/she “at least plays a direct and necessary role in the free flow of goods across borders” - regardless of what industry he/she works in. 

In Flower Foods, the delivery driver delivered baked goods that were originally made out-of-state.  The driver picked up the baked goods at an in-state warehouse and then delivered them only to in-state grocery stores. 

The Tenth Circuit Ct. of Appeals denied arbitration by holding that the delivery driver formed “the last leg of the products’ continuous internal journey” – making the driver an “integral part of a single, unbroken stream of interstate commerce”.