WASHINGTON, D.C. (July 17, 2025) – NFIB filed an amicus brief in the case Jose Madrigal v. Ferguson Enterprises, LLC, et al. at the U.S. Court of Appeals for the Ninth Circuit. The case considers the Federal Arbitration Act’s exemption of transportation workers who engage in foreign or interstate commerce. NFIB filed the brief with the National Association of Wholesaler-Distributors and the U.S. Chamber of Commerce.

“Small businesses nationwide rely on consistent and efficient supply chains in order to provide goods to their customers, and distributors are an integral part of that supply chain,” said Beth Milito, Vice President and Executive Director of NFIB’s Small Business Legal Center. “Expanding this exemption puts this supply chain at risk. By eliminating the option of arbitration, countless small businesses and the drivers they employ will be pushed into costly and time-consuming litigation any time there is a dispute. This will lead to higher costs for businesses, employees, and ultimately consumers.”

The coalition brief argues three main points: 1) The district court improperly expanded the transportation worker exemption, 2) The Court should clarify that workers who make in-state deliveries of goods, which have already come to rest at in-state warehouses, are not exempt from the Federal Arbitration Act, and 3) If the district court’s decision is permitted to stand, it will lead to more costly litigation for small businesses and employees.

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.