The Federal Arbitration Act (FAA) governs arbitration in written contracts involving interstate commerce. The party asserting FAA preemption has the burden to present evidence establishing a contract affecting interstate commerce. However, Section 1 of the FAA provides a limited exemption from the law’s coverage to “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” This exception applies to “transportation workers” who are actually engaged in the movement of goods in interstate commerce.
Critical Note: A transportation worker does not necessarily have to physically cross state lines in order to engage in the movement of goods in interstate commerce. Even in the absence of a driver personally crossing state lines, if the goods being delivered are within the stream of interstate commerce, the driver will belong to the class of workers engaged in interstate commerce and the exemption will apply.