A baggage-handling manager was exempt under the Federal Arbitration Act (FAA) from arbitrating her overtime claims against Southwest Airlines, the U.S. Supreme Court unanimously ruled June 6. We've gathered articles on the news from SHRM Online and other outlets on this decision, Southwest Airlines Co. v. Saxon.
When the employee came to believe that Southwest was failing to pay proper overtime wages to other ramp supervisors and her, she brought a class action against Southwest under the Fair Labor Standards Act. Southwest sought to enforce its arbitration agreement with the worker under the FAA.
"Because this dispute had the potential to declare all airline, trucking and busing industry employees to be transportation workers under the exemption from the FAA, the Saxon opinion is a big win for those industries as a whole," said Keith Wilkes, an attorney with Hall Estill in Tulsa, Okla.
"Instead of exempting ticket agents, ramp workers and even office employees of companies involved in transporting goods in interstate commerce, the court rejected that broad application in favor of focusing on the type of work actually performed by a class of workers here, the physical loading and unloading of cargo for its transportation across state and international borders," Wilkes said.
"It would be a mistake to interpret the decision as a retreat from the court's commitment to enforce mandatory arbitration provisions in employment agreements as a general matter," said Richard...
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