NFIB has submitted an amicus brief in the case of Jose Madrigal v. Ferguson Enterprises, LLC, et al., currently before the U.S. Court of Appeals for the Ninth Circuit. The case examines the Federal Arbitration Act's exemption for transportation workers involved in foreign or interstate commerce. NFIB is joined by the National Association of Wholesaler-Distributors and the U.S. Chamber of Commerce in this effort.
Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center, said, "Small businesses nationwide rely on consistent and efficient supply chains in order to provide goods to their customers, and distributors are an integral part of that supply chain." She expressed concern that expanding this exemption could jeopardize supply chains by forcing small businesses and their drivers into costly litigation instead of arbitration.
The coalition's brief highlights three key arguments: firstly, that the district court improperly expanded the transportation worker exemption; secondly, it urges clarification that workers making in-state deliveries from warehouses should not be exempt from the Federal Arbitration Act; and thirdly, it warns that upholding the district court's decision could result in increased litigation costs for small businesses and employees.
The NFIB Small Business Legal Center actively defends small business owners' rights across various courts, including more than 40 cases at federal and state levels as well as at the U.S. Supreme Court.
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