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<xTITLE>NJ Supremes Hold that Arbitration is Applicable to Workers Exempt Under FAA</xTITLE>

NJ Supremes Hold that Arbitration is Applicable to Workers Exempt Under FAA

by Indraneel Gunjal
July 2020 Indraneel Gunjal

The New Jersey Supreme Court has decided that the New Jersey Arbitration Act (NJAA) can apply to disputed arbitration agreements, even though they are exempt from the application of the identical Federal Arbitration Act (FAA). This issue came up before the Supreme Court through an appeal from the cases of Colon v. Strategic Delivery Solutions and Arafa v. Health Express where the appellate courts in New Jersey came out with divergent rulings.

Section 1 of the FAA exempts its operation to certain workers engaged in interstate transportation such as independent contractors, meaning that they cannot be compelled to arbitrate under the FAA. Noting this, the NJ Supreme Court concluded that the NJAA nevertheless renders such arbitration agreements enforceable if the independent contractors had knowingly waived their right to jury trial and agreed to submit their claims to arbitration.

For more information see here: NJ Arbitration Law Applies to FAA-Exempt Truckers, High Court Rules in Wage Litigation by Suzette Parmley.






Indraneel Gunjal is an attorney from India and an advanced degree graduate from Stanford Law School, Class of 2020 with a specialization in International Economic Law, Business & Policy. Before joining Stanford, he worked with the Trade Policy Division of the Department of Commerce, Government of India where he was a member of the legal team representing India in its inter-state trade and investment disputes, Free Trade Agreement (FTA) negotiations, and also tasked with formulating and reviewing its trade policy.

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