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Are All Contracts Of Employment Exempt From The Provisions Of The Federal Arbitration Act - The Supreme Court Settles The Matter, B. Matthew Struble
Are All Contracts Of Employment Exempt From The Provisions Of The Federal Arbitration Act - The Supreme Court Settles The Matter, B. Matthew Struble
Missouri Law Review
Congress enacted the Federal Arbitration Act (“FAA”) in 1925 to reverse the longstanding hostility of courts toward agreements to arbitrate and to make such agreements specifically enforceable. Section 1 of the FAA exempts the employment contracts of “seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce” from the Act’s coverage. The breadth of that exemption has been an issue with the courts of appeals for the past six decades, with the overwhelming majority of courts holding that Section 1 exempts only the contracts of employment of transportation workers form the FAA. In Craft v. …
Arbitration Agreements In Labor And Employment Contracts: Well Within The Reach Of The Faa - Circuit City Stores, Inc. V. Adams, Lisa M. Eaton
Arbitration Agreements In Labor And Employment Contracts: Well Within The Reach Of The Faa - Circuit City Stores, Inc. V. Adams, Lisa M. Eaton
Journal of Dispute Resolution
Despite a series of decisions where the Supreme Court has upheld the use of arbitration in the employment context, the Court has never clearly stated that arbitration agreements contained in employment contracts fall under the Federal Arbitration Act (FAA). This omission has led to a split in the Circuits as to the scope of the FAA coverage ad exemption provisions. The controversy centers on whether the FAA covers all employment contracts except those of employees who transport people or goods in interstate commerce or whether the FAA exempts all employment contracts.