Supreme Court Expands FAA Exemption for Last-Mile Delivery Workers

S. Supreme Court issued a unanimous decision in Brock v. Flowers Foods that fundamentally reshapes how last-mile delivery workers are classified under federal labor law.

The ruling clarifies that a transportation worker—even one who never crosses state lines—can be considered engaged in interstate commerce if their work forms part of a larger interstate supply chain, making them eligible to sue employers over disputes rather than being forced into arbitration under the Federal Arbitration Act. For supply chain and logistics professionals, this decision has immediate and structural implications. Companies that employ last-mile delivery workers, including Amazon, UPS, and others, now face expanded litigation exposure from workers who previously had their disputes channeled through arbitration.

The ruling does not just affect dedicated drivers; it signals that courts will take a broader view of what constitutes "interstate commerce" in transportation contexts, potentially affecting mechanics, station attendants, and other support roles adjacent to transport operations. The decision also marks the second unanimous defeat for Flowers Foods at the Supreme Court in three years on worker classification issues. This pattern suggests the Court is moving toward a more expansive interpretation of labor protections in transportation, creating strategic pressure on companies to reconsider how they structure employment agreements, franchise relationships, and dispute resolution mechanisms.