Latrice Saxon v. Southwest Airlines Company

993 F.3d 492
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 31, 2021
Docket19-3226
StatusPublished
Cited by26 cases

This text of 993 F.3d 492 (Latrice Saxon v. Southwest Airlines Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Latrice Saxon v. Southwest Airlines Company, 993 F.3d 492 (7th Cir. 2021).

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 19-3226 LATRICE SAXON, Plaintiff-Appellant, v.

SOUTHWEST AIRLINES CO., Defendant-Appellee. ____________________

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 19-cv-0403 — Robert M. Dow, Jr., Judge. ____________________

ARGUED MARCH 3, 2021 — DECIDED MARCH 31, 2021 ____________________

Before MANION, WOOD, and ST. EVE, Circuit Judges. ST. EVE, Circuit Judge. The Federal Arbitration Act has, since 1925, established a federal policy favoring arbitration. But every policy has its limits. One of the limits Congress placed on the Arbitration Act is an exemption for “contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” 9 U.S.C. § 1. The Supreme Court and the ejusdem generis canon of statutory construction tell us that the last category refers 2 No. 19-3226

not to all contracts of employment, but only those belonging to “transportation workers.” Beyond the two examples the statute provides—seamen and railroad employees—deciding who qualifies as a transportation worker is not always an easy task. Latrice Saxon is a ramp supervisor who manages and as- sists workers loading and unloading airplane cargo for South- west Airlines Company. After she brought a lawsuit against her employer, Southwest invoked the Arbitration Act. Saxon asserted that she was an exempt transportation worker, but the district court found her work too removed from interstate commerce and dismissed the case. We reverse. The act of loading cargo onto a vehicle to be transported interstate is itself commerce, as that term was un- derstood at the time of the Arbitration Act’s enactment in 1925. Airplane cargo loaders, as a class, are engaged in that commerce, in much the way that seamen and railroad em- ployees were, and Saxon and the ramp supervisors are mem- bers of that class. It therefore follows that they are transporta- tion workers whose contracts of employment are exempted from the Arbitration Act. I As a ramp supervisor at Chicago Midway International Airport, Saxon supervises, trains, and assists a team of ramp agents—Southwest employees who physically load and un- load planes with passenger and commercial cargo. Ostensibly her job is meant to be purely supervisory, but Saxon’s uncon- troverted declaration asserts that she and the other ramp su- pervisors at Midway frequently fill in as ramp agents when they are short on workers. Though the ramp agents are No. 19-3226 3

covered by a collective bargaining agreement, supervisors like Saxon are excluded. She, like other excluded Southwest employees, agreed annually as part of her contract of employ- ment—not separately—to arbitrate wage disputes. Believing that Southwest failed to pay ramp supervisors for overtime work, Saxon nevertheless filed a putative collec- tive action against Southwest under the Fair Labor Standards Act, 29 U.S.C. §§ 201–219. Southwest moved to stay the suit pending arbitration, see 9 U.S.C. § 3, or to dismiss it for im- proper venue in light of Saxon’s arbitration agreement, Fed. R. Civ. P. 12(b)(3); Contʹl Cas. Co. v. Am. Nat. Ins. Co., 417 F.3d 727, 733 (7th Cir. 2005). Saxon responded that the Arbitration Act did not apply because she was a member of a “class of workers engaged in foreign or interstate commerce,” and therefore exempted by § 1 of the Arbitration Act. In Circuit City Stores v. Adams, 532 U.S. 105, 119 (2001), the Supreme Court held that the exemption in § 1 applies only to “transportation workers.” Relying on Lenz v. Yellow Transpor- tation, Inc., 431 F.3d 348, 352 (8th Cir. 2005), Saxon maintained that she was a transportation worker because Southwest was a transportation company, and she was responsible for load- ing and unloading goods for transportation. Southwest re- plied that Saxon fell outside the exemption because she did not personally move goods across state lines or manage those who do. The district court agreed with Southwest. Surveying the limited caselaw, the court determined that the “linchpin” of the transportation-worker definition was “actual transporta- tion, not merely handling goods …. at one end or the other” of a network. In support, it highlighted the exclusion for sea- men—a term which it understood not to cover the 4 No. 19-3226

longshoreman who loaded and unloaded ships—and ex- tended that logic to warehousemen, stevedores, porters, and to Saxon’s analogous role as a ramp supervisor. Saxon ap- pealed. II We recently considered the framework of the Arbitration Act and the § 1 exemption in Wallace v. Grubhub Holdings, Inc., 970 F.3d 798 (7th Cir. 2020). Congress passed the Act in 1925 in response to the general “hostility of American courts to the enforcement of arbitration agreements” and “sought to re- place that ‘widespread judicial hostility’ with a ‘liberal federal policy favoring arbitration.’” Id. at 799–800 (citing AT&T Mo- bility LLC v. Concepcion, 563 U.S. 333, 339 (2011)). Section 1 of the Act represents an outer limit on Congress’s favor toward arbitration. See New Prime Inc. v. Oliveira, 139 S. Ct. 532, 543 (2019). It provides that “nothing” in the Act shall apply to “contracts of employment” for “seamen,” “railroad employ- ees,” and a third, residual category, “any other class of work- ers engaged in foreign or interstate commerce.” 9 U.S.C. § 1; Wallace, 970 F.3d at 799. The parties do not dispute that Saxon’s arbitration agree- ment is a contract of employment but only whether Saxon is one of the workers exempted. Like the plaintiff in Wallace, Saxon does not claim to be a seaman or railroad employee and argues only that she fits in the residual category. To understand the scope of that category, we explained in Wallace, “our inquiry ‘begins with the text.’” 970 F.3d at 800 (citing Ross v. Blake, 136 S. Ct. 1850, 1856 (2016)). We interpret the words of that text based on their “ordinary … meaning … at the time Congress enacted the statute.” New Prime, 139 S. No. 19-3226 5

Ct. at 539 (quoting Wis. Cent. Ltd v. United States, 138 S. Ct. 2067, 2074 (2018)). The first textual clue is the phrase “class of workers,” which obligates us to focus on the broader occupation, not the individual worker. Wallace, 970 F.3d at 800. We therefore ask not whether Saxon is engaged in commerce, but whether a given class of workers is engaged in commerce and whether Saxon is a member of that class. Id. at 802. The second clue is the two enumerated categories of sea- men and railroad employees, which provide a gloss on what it means for a class of workers to be “engaged in commerce.” Id. at 801. Standing alone, the phrase “engaged in commerce” is a term of art with a narrower scope than similar formula- tions like “involving commerce” or “affecting commerce,” though its precise breadth often depends on “statutory con- text.” Circuit City, 532 U.S. at 115–18. Under the ejusdem gene- ris canon of construction, general words are interpreted to re- flect the “common characteristics” of the enumerated catego- ries that precede them. Ctr. Video Indus. Co. v. Roadway Package Sys., Inc., 90 F.3d 185, 187–88 (7th Cir.

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