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What Recent SCOTUS Ruling Means for Manufacturers

Industry Today

  • June 07, 2024

John Amabile, Debbie Edney, and Jonathan Crotty wrote in Industry Today about how manufacturers and other companies involved in interstate commerce should consider adjusting their arbitration agreements to sidestep litigation that will likely flow from a recent U.S. Supreme Court ruling.

"That is one of the primary takeaways from the Supreme Court’s recent ruling in the Bissonnette v. LePage Bakeries Park St. case," they wrote. "As we wrote in an earlier Industry Today analysis of the case’s Supreme Court arguments, at issue was the 'residual' exemption to the Federal Arbitration Act (FAA) that allows employees who qualify as 'any other class of workers engaged in foreign or interstate commerce' to avoid arbitration — even if they had signed an arbitration clause."

"Plaintiffs’ attorneys have been filing a variety of lawsuits attempting to stretch which workers count as engaged in interstate commerce," they continued. "The broader the exemption, the more workers who can avoid arbitration and proceed with lawsuits, including class actions. The U.S. Chamber of Commerce and others in the business community have taken a keen interest in these cases. Companies typically prefer to handle employment disputes in arbitration because it can be faster and cheaper."

Click here to read the full article: What Recent SCOTUS Rulings Means for Manufacturers

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