TransCanada USA Services, Inc.’s motion to compel arbitration of Fair Labor Standards Act claims brought by an oil pipeline inspector for himself and other similarly situated inspectors is granted, a Texas federal district court ruled. The court ruled the employees aren’t exempt transportation employees pursuant to the Federal Arbitration Act because their scope of employment isn’t directly engaged in foreign or interstate commerce. Because state laws govern the arbitration agreement, even if the FAA didn’t compel arbitration the Texas Arbitration Act would compel arbitration between the oil and gas company and the inspectors, the court stated.
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