![]() The court concluded the FAA analysis by stating: Additionally, the appeals court found that “engaged in” is “the crucial phrase for understanding the exemption” and that the construction of the exemption includes workers “within the flow of interstate commerce,” not only those crossing state lines. First, the appeals court concluded that the Section 1 exemption applies to “agreements to perform work,” which includes independent contractors. Oliveira, and the Federal Employer’s Liability Act (FELA) for understanding the exemption clause. ![]() The appeals court primarily relied on two Supreme Court cases, Circuit City Stores, Inc. Those terms of service state that “ and Amazon agree to resolve disputes between and Amazon on an individual basis through final and binding arbitration, unless opt out of arbitration within 14 calendar days of the effective date of th agreement.” The agreement states that “the Federal Arbitration Act and applicable federal law will govern any dispute that may arise between the parties.” “These contractors, like Waithaka, sign up for delivery shifts and then use their own methods of transportation-typically, a private vehicle-to deliver products ordered through Amazon within a specified timeframe and in compliance with other Amazon service standards.” Contractors are paid hourly, but if a contractor requires additional time to make deliveries, they are not compensated for that time.Ĭontactors start by creating an account through the AmFlex app and agree to the AmFlex Independent Contractor Terms of Service. Amazon Logistics replaced Amazon’s historical use of third-party delivery providers with independent contractors who use the smartphone app Amazon Flex (AmFlex). , involved a last mile delivery driver, Bernard Waithaka, hired by Amazon Logistics, a subsidiary of. In the opinion written by Judge Lipez for the unanimous three-judge panel, the court said that “the exemption encompasses the contracts of transportation workers who transport goods or people within the flow of interstate commerce, not simply those who physically cross state lines in the course of their work.” Section 1 of the FAA exempts “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” The US Court of Appeals for the First Circuit ruled Friday that Amazon’s “last mile” delivery drivers are exempt from the Federal Arbitration Act (FAA) because they are engaged in interstate commerce. ![]()
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