US Supreme Court Exempts Last-Mile Drivers From Mandatory Arbitration

The U.S. Supreme Court unanimously ruled that "last-mile" drivers qualify as interstate workers and are not subject to mandatory arbitration agreements ^[1].

This decision removes a significant legal barrier for delivery workers, allowing them to pursue disputes in court rather than through private arbitration. By expanding the definition of an interstate worker, the ruling potentially affects thousands of drivers who operate within a single state but support a larger national supply chain.

In the case of Flowers Foods v. Brock, the justices ruled that an independent bakery distributor for Flowers Foods Inc. and two subsidiaries ^[2] fall under a federal law exempting transportation workers from mandatory arbitration requirements ^[3]. The decision was announced on May 27, 2026 ^[1].

Justice Neil Gorsuch wrote the opinion for the nine-member court ^[1]. The ruling centers on Section 1 of the Federal Arbitration Act (FAA). The Court found that a worker who transports goods on an intrastate leg of an interstate journey can qualify for this exemption even if they do not personally cross state lines ^[1].

"At least sometimes, a worker who transports goods on an intrastate leg of an interstate journey can qualify for Section 1's exemption without satisfying either of those criteria," Gorsuch said ^[1].

Previously, some interpretations of the FAA required drivers to physically cross state borders to be considered interstate workers. The Court's decision validates that the nature of the journey, rather than the specific movement of the individual driver, determines the exemption ^[4]. This means drivers who handle the final delivery leg of a product's journey are now protected by the same federal exemptions as long-haul truckers ^[4].