You don't have to cross state lines to be involved in interstate commerce

The Federal Arbitration Act (FAA) states that most arbitration agreements are as valid and enforceable as any other contracts. One exemption relates to "seamen, railroad employees, [and] and other classes of workers engaged in foreign or interstate commerce."

In a recent case, Amazon sought to compel certain delivery drivers to arbitrate their wage and hour claims. The drivers argued they were covered by the FAA's "interstate commerce" exemption. The U.S. 9th Circuit Court of Appeals (whose rulings apply to all California employers) ultimately ruled for the drivers, saying they don't need to cross state lines to be covered by the exemption.

Facts

Amazon has historically delivered products by shipping them via third-party delivery companies such as UPS or Federal Express. More recently, in some metropolitan areas, Amazon has contracted with individuals to make "last mile" deliveries of products from its warehouses to customers. These "AmFlex deliverers" use their own vehicle, bicycle, or public transportation to make the deliveries.

To participate in the program, AmFlex deliverers were required to sign a contract agreeing to arbitrate all disputes on an individual basis and not on a class or collective basis. The contract said the FAA controlled the arbitration provision.