Executive Summary: What employees qualify as “transportation workers” such that they are exempt from the Federal Arbitration Act (FAA)? The Second Circuit endeavored to answer that question on May 5, 2022, in an important case for employers. Bissonnette v. LePage Bakeries Park St., LLC (2d Cir. 2022). Although the decision included quite a bit of dictum (discussion not essential to the holding), the court ultimately concluded that deliverers of baked goods did not qualify for the transportation worker exemption, and the plaintiffs’ claims were subject to arbitration under the FAA.
The Case:
Plaintiffs filed a class action lawsuit in federal district court in Connecticut against Flowers Food, Inc. and two of its subsidiaries (collectively Flowers) for wage and hour violations. Flowers is the holding company of subsidiaries that produce breads, including Wonder Bread, and buns, rolls, and snack cakes in 47 bakeries. Subsidiaries of Flowers sell exclusive distribution rights for these baked goods within specific geographic areas. Independent distributors who purchase these distribution rights market, sell, and deliver Flowers baked goods.
Plaintiffs are two independent distributors of Flowers’ goods. Under a distribution agreement entered into by all the independent distributors, plaintiffs picked up the baked goods from various warehouses in Connecticut and then delivered them to stores and restaurants within their specified geographic territory. Plaintiffs’ role as...
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