Full Steam Ahead on Arbitration Says NJ Appellate Court

Seyfarth Synopsis: Earlier this year, in New Prime, the Supreme Court decisively held that the Federal Arbitration Act’s § 1 exemption for transportation workers engaged in foreign or interstate commerce applied to independent contractors and employees alike. While New Prime presented a bump in the road to arbitration, a recent appellate court decision in New Jersey provides a road map for enforcing arbitration agreements with transportation workers who are otherwise subject to FAA’s § 1 exemption. In Colon v. Strategic Delivery Solutions, LLC, the court held that even if the FAA § 1 exemption applied to the plaintiff delivery drivers, the parties’ arbitration agreement was enforceable under the state analog to the FAA.

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