Southwest Airlines Co. v. Saxon, 596 U.S. ___ (2022)
Saxon, a Southwest Airlines ramp supervisor, frequently loads and unloads cargo alongside the ramp agents. Alleging that Southwest was failing to pay proper overtime wages to ramp supervisors, Saxon brought a putative class action under the Fair Labor Standards Act. Saxon’s employment contract required her to arbitrate wage disputes individually; she claimed that ramp supervisors were a “class of workers engaged in foreign or interstate commerce,” exempt from the Federal Arbitration Act, 9 U.S.C. 1.
The Supreme Court affirmed the Seventh Circuit, holding that the act of loading cargo onto a vehicle to be transported interstate is itself commerce according to the “ordinary, contemporary, common meaning” of the word. By referring to “workers” rather than “employees,” the FAA directs attention to “the performance of work” and the word “engaged” similarly emphasizes the actual work that class members typically carry out. Saxon is a member of a “class of workers” based on what she frequently does, physically loading and unloading cargo on and off airplanes, and not on what Southwest does generally. Exempted workers must at least play a direct and “necessary role in the free flow of goods” across borders. Cargo loaders exhibit this central feature of a transportation worker.
Airline employees who load and unload cargo to be transported interstate are "workers engaged in foreign or interstate commerce" and exempt from the Federal Arbitration Act.
SUPREME COURT OF THE UNITED STATES
Syllabus
Southwest Airlines Co. v. Saxon
certiorari to the united states court of appeals for the seventh circuit
No. 21–309. Argued March 28, 2022—Decided June 6, 2022
Respondent Latrice Saxon, a ramp supervisor for Southwest Airlines, trains and supervises teams of ramp agents who physically load and unload cargo on and off airplanes that travel across the country. Like many ramp supervisors, Saxon also frequently loads and unloads cargo alongside the ramp agents. Saxon came to believe that Southwest was failing to pay proper overtime wages to ramp supervisors, and she brought a putative class action against Southwest under the Fair Labor Standards Act of 1938. Because Saxon’s employment contract required her to arbitrate wage disputes individually, Southwest sought to enforce its arbitration agreement and moved to dismiss. In response, Saxon claimed that ramp supervisors were a “class of workers engaged in foreign or interstate commerce” and therefore exempt from the Federal Arbitration Act’s coverage. 9 U. S. C. §1. The District Court disagreed, holding that only those involved in “actual transportation,” and not those who merely handle goods, fell within §1’s exemption. The Court of Appeals reversed. It held that “[t]he act of loading cargo onto a vehicle to be transported interstate is itself commerce, as that term was understood at the time of the [FAA’s] enactment in 1925.” 993 F.3d 492, 494.
Held: Saxon belongs to a “class of workers engaged in foreign or interstate commerce” to which §1’s exemption applies. Pp. 3–11.
(a) This Court interprets §1’s language according to its “ordinary, contemporary, common meaning.” Sandifer v. United States Steel Corp., 571 U.S. 220, 227. To discern that ordinary meaning, those words “ ‘must be read’ ” and interpreted “ ‘in their context.’ ” Parker Drilling Management Services, Ltd. v. Newton, 587 U. S. ___, ___. Pp. 3–7.
(1) The parties dispute how to define the relevant “class of workers.” Saxon argues that because the air transportation industry engages in interstate commerce, airline employees, as a whole, constitute a “class of workers” covered by §1. By contrast, Southwest maintains that the relevant class includes only those airline employees actually engaged day-to-day in interstate commerce. This Court rejects Saxon’s industrywide approach. By referring to “workers” rather than “employees,” the FAA directs attention to “the performance of work.” New Prime Inc. v. Oliveira, 586 U. S. ___, ___. And the word “engaged” similarly emphasizes the actual work that class members typically carry out. Saxon is therefore a member of a “class of workers” based on what she frequently does at Southwest—that is, physically loading and unloading cargo on and off airplanes—and not on what Southwest does generally. Pp. 3–4.
(2) The parties also dispute whether the class of airplane cargo loaders is “engaged in foreign or interstate commerce.” It is. To be “engaged” in “commerce” means to be directly involved in transporting goods across state or international borders. Thus, any class of workers so engaged falls within §1’s exemption. Airplane cargo loaders are such a class.
Context confirms this reading. In Circuit City Stores, Inc. v. Adams, 532 U.S. 105, the Court applied two well-settled canons of statutory interpretation to hold that §1 exempted only “transportation workers,” rather than all employees. The Court indicated that any such exempted worker must at least play a direct and “necessary role in the free flow of goods” across borders. Id., at 121. Cargo loaders exhibit this central feature of a transportation worker.
A final piece of statutory context further confirms that cargo loading is part of cross-border “commerce.” Section 1 of the FAA defines exempted “maritime transactions” to include “agreements relating to wharfage . . . or any other matters in foreign commerce.” Thus, if an “agreemen[t] relating to wharfage”—i.e., money paid to access a cargo-loading facility—is a “matte[r] in foreign commerce,” it stands to reason that an individual who actually loads cargo on vehicles traveling across borders is himself engaged in such commerce. Pp. 4–7.
(b) Both parties proffer arguments disagreeing with this analysis, but none is convincing. Pp. 7–11.
(1) Saxon thinks the relevant “class of workers” should include all airline employees, not just cargo loaders. For support, she argues that “railroad employees” and “seamen”—two classes of workers listed immediately before §1’s catchall provision—refer generally to employees in those industries. Saxon’s premise is flawed. “Seamen” is not an industrywide category but instead a subset of workers engaged in the maritime shipping industry. For example, “seamen” did not include all those employed by companies engaged in maritime shipping when the FAA was enacted. Pp. 8–9.
(2) Southwest’s three counterarguments all fail. First, Southwest narrowly construes §1’s catchall category—“any other class of workers engaged in foreign or interstate commerce”—to include only workers who physically transport goods or people across foreign or international boundaries. Southwest relies on the definition of “seamen” as only those “employed on board a vessel,” McDermott Int’l, Inc. v. Wilander, 498 U.S. 337, 346, and argues that the catchall category should be read along the same lines to exclude airline workers, like Saxon, who do not ride aboard an airplane in interstate or foreign transit. But Southwest’s acknowledgment that the statute’s reference to “railroad employees” is somewhat ambiguous in effect concedes that the three statutory categories in §1—“seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce”—do not share the attribute that Southwest would like read into the catchall provision. Well-settled canons of statutory interpretation neither demand nor permit limiting a broadly worded catchall phrase based on an attribute that inheres in only one of the list’s preceding specific terms. Second, Southwest argues that cargo loading is similar to other activities that this Court has found to lack a necessary nexus to interstate commerce in other contexts. But the cases Southwest invokes all addressed activities far more removed from interstate commerce than physically loading cargo directly on and off an airplane headed out of State. See, e.g., Gulf Oil Corp. v. Copp Paving Co., 419 U.S. 186. Finally, Southwest argues that the FAA’s “proarbitration purposes” counsel in favor of an interpretation that errs on the side of fewer §1 exemptions. Here, however, plain text suffices to show that airplane cargo loaders, and thus ramp supervisors who frequently load and unload cargo, are exempt from the FAA’s scope under §1. Pp. 9–11.
993 F.3d 492, affirmed.
Thomas, J., delivered the opinion of the Court, in which all other Members joined, except Barrett, J., who took no part in the consideration or decision of the case.
JUDGMENT ISSUED |
Adjudged to be AFFIRMED. Thomas, J., delivered the opinion of the Court, in which all other Members joined, except Barrett, J., who took no part in the consideration or decision of the case. |
Argued. For petitioner: Shay Dvoretzky, Washington, D. C. For respondent: Jennifer D. Bennett, San Francisco, Cal. |
Reply of Southwest Airlines Co. submitted. |
Reply of petitioner Southwest Airlines Co. filed. (Distributed) |
Brief amicus curiae of American Association for Justice filed. (Distributed) |
Brief amicus curiae of Public Justice filed. (Distributed) |
Amicus brief of State of Illinois submitted. |
Amicus brief of Public Justice submitted. |
Amicus brief of American Association for Justice submitted. |
Brief amici curiae of State of Illinois, et al. filed. (Distributed) |
Amicus brief of Historians submitted. |
Amicus brief of National Academy of Arbitrators and National Association of Railroad Referees submitted. |
Brief amici curiae of National Academy of Arbitrators and National Association of Railroad Referees filed (3/10/2020). (Distributed) |
Amicus brief of Historians not accepted for filing. (March 02, 2022) |
Amicus brief of American Federation of Labor and Congress of Industrial Organizations submitted. |
Amicus brief of National Academy of Arbitrators and National Association of Railroad Referees submitted. |
Brief amicus curiae of American Federation of Labor and Congress of Industrial Organizations filed. (Distributed) |
Brief amici curiae of Historians filed. (Distributed) |
Brief amici curiae of National Academy of Arbitrators and National Association of Railroad Referees filed.(3/10/2020) (Distributed) |
Amicus brief of National Employment Lawyers Association submitted. |
Amicus brief of Latrice Saxon submitted. |
Brief amicus curiae of National Employment Lawyers Association filed. (Distributed) |
Brief of Latrice Saxon submitted. |
Brief of respondent Latrice Saxon filed. (Distributed) |
Motion of Latrice Saxon for an extension of time submitted. |
Motion to extend the time to file respondent's brief on the merits is granted and the time is extended to and including February 24, 2022. |
Motion for an extension of time to file respondent's brief on the merits filed. |
Motion to dispense with printing the joint appendix filed by petitioner GRANTED. Justice Barrett took no part in the consideration or decision of this motion. |
CIRCULATED |
Amicus brief of Lyft, Inc. submitted. |
Amicus brief of Airlines for America submitted. |
Amicus brief of Amazon.com, Inc. submitted. |
Amicus brief of Chamber of Commerce of the United States of America; National Association of Manufacturers submitted. |
Amicus brief of Uber Technologies, Inc. submitted. |
Brief amici curiae of Chamber of Commerce of the United States of America; National Association of Manufacturers filed. |
Brief amicus curiae of Lyft, Inc. filed. |
Brief amicus curiae of Amazon.com, Inc. filed. |
Amicus brief of Washington Legal Foundation submitted. |
Brief amicus curiae of Uber Technologies, Inc. filed. |
Brief amici curiae of Airlines for America filed. |
Brief amicus curiae of Washington Legal Foundation filed. |
ARGUMENT SET FOR Monday, March 28, 2022. |
Record requested from the U.S.C.A. 7th Circuit. |
The record from the U.S.C.A. 7th Circuit is electronic and located on Pacer. |
Brief of Southwest Airlines Co. submitted. |
Brief of petitioner Southwest Airlines Co. filed. |
Motion of Southwest Airlines Co. to dispense with joint appendix submitted. |
Motion to dispense with printing the joint appendix filed by petitioner Southwest Airlines Co. |
Petition GRANTED. Justice Barrett took no part in the consideration or decision of this petition. |
DISTRIBUTED for Conference of 12/10/2021. |
DISTRIBUTED for Conference of 12/3/2021. |
Reply of petitioner Southwest Airlines Co. filed. (Distributed) |
Brief of respondent Latrice Saxon in opposition filed. |
Brief amicus curiae of Airlines for America filed. |
Brief amicus curiae of Washington Legal Foundation filed. |
Motion to extend the time to file a response is granted and the time is extended to and including November 1, 2021. |
Motion to extend the time to file a response from September 30, 2021 to November 1, 2021, submitted to The Clerk. |
Petition for a writ of certiorari filed. (Response due September 30, 2021) |