Labor & Employment Law Update

Employers that rely on transportation workers, delivery drivers, and gig drivers may face significantly increased litigation risk following a recent U.S. Supreme Court decision. In Flowers Foods v. Brock, the Court ruled that “last mile” local delivery drivers qualify for the Federal Arbitration Act’s exemption for “transportation workers engaged in interstate commerce,” even if the drivers do not cross state lines. As a result, some transportation workers and gig drivers now have the green light to pursue their disputes in a court of law, even if they signed a private arbitration agreement with their employer/company.

Most employers have policies and procedures in place to maintain an atmosphere of safety and mutual respect in the workplace. These policies often prohibit employees from engaging in unlawful behavior, such as harassment, discrimination, and retaliation. But what happens when a third party (i.e., a customer, vendor, or other party outside of an employer’s direct control) engages in bad behavior – is the employer liable for a third party’s behavior? It depends.