U.S. Supreme Court Takes Up The Transportation Worker Exemption Again

Duane Morris Takeaways: On October 20, 2025, in Flower Foods, et al. v. Brock, No. 23-0936 (U.S.), the U.S. Supreme Court granted a writ of certiorari to decide whether last-mile delivery drivers are considered transportation workers, and thus exempt under the Federal Arbitration Act (the "FAA"), when the driver's route is purely intrastate.

The decision will have sweeping implications for logistics companies and any business employing delivery drivers across the country.

Case Background

Flower Foods, Inc. ("Flower Foods") operates one of the largest bakery companies in the United States. Under Flower Foods' business model, the company contracts with independent distributors who purchase the rights to distribute products in specific territories. The delivery-driver distributors "stock shelves, maintain special displays, and develop and preserve positive customer relations. "Brock v. Flower Foods, Inc., 121 F. 4th 753, 757 (10th Cir. 2024). Flower Foods "produces and markets the baked goods." Id.

Flower Foods delivers the products it produces, via these delivery-driver distributors, who are classified as independent contractors under the Fair Labor Standards Act (the "FLSA"). These products are usually produced in out-of-state bakeries, but then shipped to a local warehouse, where the local delivery driver picks them up to sell retail stores. This process is more commonly known as "last-mile delivery." Plaintiff Angelo Brock ("Plaintiff or "Brock"), through his company Brock, Inc., was one of those delivery drivers. When Brock started delivering Flower Foods' products, he entered into a Distributor Agreement that contained a "Mandatory and Binding Arbitration" clause, which required nearly all disputes to be arbitrated under the FAA. Id. at 758.

Nonetheless, Brock filed a putative collective and class action under the FLSA, and Colorado labor law, claiming that Flower Foods misclassified him and other delivery-driver distributors as independent contractors. As a result, Flower Foods moved to compel arbitration, but the U.S. District Court for Colorado denied its request. The District Court concluded that Brock fell within the ''transportation workers exemption" of the FAA, which exempts transportation workers engaged in interstate commerce from arbitration. The District Court reasoned that, although Brock did not cross state lines, he ''actively engaged in the transportation of [the company's] products across state lines into Colorado" and thus was covered by the exemption. Id. at 759. Flower Foods appealed that decision to the U.S. Court of Appeals for the Tenth Circuit.

The Lower Court Opinion

On appeal, and on November 12, 2024, Judge Gregory Phillips, writing for the U.S. Court of Appeals for the Tenth Circuit, affirmed the District Court's decision that delivery-driver distributors were exempt from the FAA. Judge Phillips explained that, although Brock's routes were entirely within Colorado, a transportation worker need not cross state lines to qualify for the exemption. Instead, individuals qualify as transportation workers if they play a direct and necessary role in the interstate flow of goods.

Relying on decisions from the First and Ninth Circuits, which also concluded "that last-mile delivery drivers . . . who make the last intrastate leg of an interstate delivery route . . . are directly engaged in interstate commerce," the Tenth Circuit reached the same conclusion. Id. at 762. The Tenth Circuit explained that "[b]oth [other] circuits focused on whether the goods moved in a continuous interstate journey or as part of multiple independent transactions." Id. Thus, the flow of interstate commerce did not stop when "Brock start[ed] the interstate delivery process by placing orders for products produced in out-of-state bakeries" and Flower Foods "deliver[ed] the products to the agreed-upon warehouse," only for Brock to "load the products at the warehouse onto his vehicle and deliver[] the goods to retail stores on his intrastate delivery route" within one day. Therefore, Brock and other delivery-driver distributors were exempt under the FAA even though they did not cross state lines. But, Flower Foods decided to ask the U.S. Supreme Court to take a third look at the issue.

On October 20, 2025, the U.S. Supreme Court agreed to hear the case, without a making any other comment, in its two-word order holding "certiorari granted."

In some ways, this decision is not surprising as the U.S. Supreme Court has decided two recent cases under the transportation worker exemption: Sw. Airlines Co. v. Saxon, 596 U.S. 450 (2022), and Bissonnette v. LePage Bakeries Park St., LLC, 601 U.S. 246 (2024). The decision in Brock, however, is poised to be the most impactful of all three of the cases.

Implications For Employers

The importance of the ultimate decision in Brock cannot be overstated. In both Saxon and Bissonnette, the U.S. Supreme Court dramatically expanded the reach of the transportation worker exemption making it increasingly difficult for employers to move to compel arbitration in class and collective actions brought by workers in logistics-adjacent positions

If workers who engage in wholly intrastate commerce fall within the exemption's reach, it may require a fundamental re-structuring of many employers' arbitration programs. In contrast, if these workers and independent contractors are not exempt from the requirements of the FAA, then employers may finally be able to rest easy knowing that their arbitration defenses remain viable for at least a portion of their workforce.

Although only time will tell what the U.S. Supreme Court will decide, corporate counsel should follow this blog for updates because the authors will be watching this case closely. Oral arguments are likely to occur during Fall 2025 and a decision will follow in Spring 2026.

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