Southwest Airlines Co. v. Saxon

596 U.S. 450, 142 S. Ct. 1783
Supreme Court of the United States·Decided June 6, 2022·No. 21-309·Published·Cited by 165 cases

Opinions

Syllabus

NOTE: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

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.

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Southwest Airlines Co. v. Saxon, 596 U.S. 450, 142 S. Ct. 1783 (2022).

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