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Southwest flies into trouble as SCOTUS holds transportation workers exempt from Federal Arbitration Act
Federal Arbitration Act, Arbitration Teddy Basham-Witherington Federal Arbitration Act, Arbitration Teddy Basham-Witherington

Southwest flies into trouble as SCOTUS holds transportation workers exempt from Federal Arbitration Act

For decades, conventional wisdom favored an expansive, business-friendly interpretation of the Federal Arbitration Act of 1925—one that has made it easier for corporations to force workers and consumers into arbitration. But this term, in Southwest Airlines v. Saxon, the Supreme Court took a different approach. Following argument by our colleague Jennifer Bennett, the Court zeroed in on the text of the FAA—specifically, how that text would have been understood when the statute was passed in 1925—and recognized an important limitation on what types of workers can be forced into arbitration.

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