Supreme Court Narrows the Application of the Federal Arbitration Act
The case does not presage a trend toward narrowing the application of the Federal Arbitration Act, and instead demonstrates that the court intends to encourage honoring arbitration agreements by insisting on a textual and precedential approach to the FAA.
June 23, 2022 at 11:48 AM
6 minute read
Employment LawThe U.S. Supreme Court narrowed the application of the Federal Arbitration Act (FAA) in its June 6 opinion in Southwest Airlines v. Saxon, 596 U.S. ____ (2002). The case, along with the earlier case New Prime v. Oliveira, 556 U.S. ____ (2019), represents the narrowest narrowing of the Supreme Court's broad holding in Epic Systems v. Lewis, 284 U.S. ____ (2018). In Southwest Airlines v. Saxon, the court answered the narrow question of whether an employee employed as a "ramp supervisor" fell within the Federal Arbitration Act's exemption of "contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce," concluding that the workers did fall within the exemption. The case does not presage a trend toward narrowing the application of the Federal Arbitration Act, and instead demonstrates that the court intends to encourage honoring arbitration agreements by insisting on a textual and precedential approach to the FAA.
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