WASHINGTON, D.C. (Dec. 12, 2025) – NFIB filed an amicus brief in the case Flowers Foods, Inc., et al. v. Angelo Brock at the United States Supreme Court. The case concerns the Residual Clause Exemption of the Federal Arbitration Act (FAA) and the enforceability of arbitration agreements. NFIB joined with several business groups in filing the brief.

“Small businesses rely on arbitration agreements as an alternative to the costly, time-consuming legal process,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “If this new interpretation is upheld, thousands of small business owners could be taken to court while the legal system redefines this long-upheld standard one case at a time. Meanwhile, small businesses everywhere will be caught in the crosshairs.”

The amicus brief argues two main points: 1) The FAA clearly demonstrates that the Residual Clause Exemption outlined in Section 1 applied only to workers whose job is directly involved in transporting goods across state or international borders, and the plaintiff’s job description does not satisfy these standards, and 2) Expanding the Residual Clause Exemption will create a more confusing standard, overburden the courts, and ultimately will harm businesses and workers.

NFIB filed the brief with the U.S. Chamber of Commerce; the Retail Litigation Center; the National Retail Federation; the National Association of Wholesaler-Distributors, and the National Association of Manufacturers.

The NFIB Small Business Legal Center protects the rights of small business owners in the nation’s courts. NFIB is currently active in more than 40 cases in federal and state courts across the country and in the U.S. Supreme Court.