Statutory Interpretation – Federal Arbitration Act – Residual Category

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7^th Circuit Court of Appeals

Case Name: Carmen Wallace, et al., v. Grubhub Holdings, Inc., et al.,

Case No.: 19-1564; 19-2156

Officials: BAUER, KANNE, and BARRETT, Circuit Judges.

Focus: Statutory Interpretation – Federal Arbitration Act – Residual Category

Section 1 of the Federal Arbitration Act exempts from the Act’s coverage “contracts of employment” of two enumerated categories of workers—“seamen” and “railroad employees.” But it also exempts the contracts of a residual category—“any other class of workers engaged in foreign or interstate commerce.” This appeal requires us to decide whether food delivery drivers for Grubhub are exempt from the Act under § 1’s residual category.

Section 1 of the FAA carves out a narrow exception to the obligation of federal courts to enforce arbitration agreements. To show that they fall within this exception, the plaintiffs had to demonstrate that the interstate movement of goods is a central part of the job description of the class of workers to which they belong. They did not even try do that, so both district courts were right to conclude that the plaintiffs’ contracts with Grubhub do not fall within § 1 of the FAA. Accordingly, the judgments are AFFIRMED.

Affirmed

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.