← Legal Glossary
Section 1 Exemption
Definition
A provision in the Federal Arbitration Act that excludes certain workers from the law's coverage. Specifically, it exempts 'contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce,' meaning those workers can take their disputes to court even if they signed an arbitration agreement.
Examples
- •Brock argued he falls within the Section 1 exemption because he delivers goods that traveled across state lines, making him a transportation worker engaged in interstate commerce.