This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
New Prime Inc. v. Dominic Oliveira concerns whether independent‑contractor agreements are considered contracts of employment and therefore exempt from the Federal Arbitration Act.
Background and question before the Court
The First Circuit held that independent‑contractor agreements are contracts of employment and thus exempt from the Federal Arbitration Act.
Justice Sotomayor asked how the word “worker” should apply to contracts of employment for various classes of workers engaged in foreign or interstate commerce.
According to New Prime Inc., according to New Prime Inc., Congress did not create a new definition of “employment” in the Section 1 exemption.
What each side argues
New Prime Inc. (Petitioner)
According to New Prime Inc., according to New Prime Inc., the First Circuit’s view that independent‑contractor agreements are contracts of employment makes them exempt from the FAA.
According to New Prime Inc., according to New Prime Inc., this reading conflicts with the plain meaning, structure, purpose, history, and context of the statute.
According to New Prime Inc., according to New Prime Inc., Congress did not define “employment” in a novel way in the exemption.
According to Prime, New Prime refutes the assertion that cited sources do not address the distinction between independent contractors and common‑law servants.
Dominic Oliveira (Respondent)
Source-limited. The record does not yet support a complete account.
What happened at oral argument
Justice Sotomayor asked how the term “worker” should apply to contracts of employment for various classes of workers.
According to Justice Sotomayor, justice Sotomayor queried whether any other area of law treats the employee versus independent‑contractor label as binding.
According to Justice Alito, justice Alito questioned whether a genuine independent contractor falls outside the exemption and how that distinction affects the case.
Justice Alito asked whether an arbitrator would be bound by a determination that Oliveira is an independent contractor for purposes of applying the Fair Labor Standards Act.
According to Justice Kagan, justice Kagan requested to return to Justice Alito’s earlier question.
Justice Ginsburg asked whether the contract at issue was the one from Coppage v. Kansas.
- [1] ef6f6af942e6f372e796-r1-c88990bdd34e2ee2.pdf, p. 5
- [2] ef6f6af942e6f372e796-r1-c88990bdd34e2ee2.pdf, p. 26
- [3] ef6f6af942e6f372e796-r1-c88990bdd34e2ee2.pdf, p. 45
- [4] ef6f6af942e6f372e796-r1-c88990bdd34e2ee2.pdf, p. 47
- [5] ef6f6af942e6f372e796-r1-c88990bdd34e2ee2.pdf, p. 33
- [6] ef6f6af942e6f372e796-r1-c88990bdd34e2ee2.pdf, p. 51
What the Court decided
Why it matters
According to New Prime Inc., according to New Prime Inc., how workers are classified determines whether the FAA exemption applies, which in turn affects whether disputes must be resolved by arbitration.
The classification also influences whether plaintiffs can obtain relief under the Fair Labor Standards Act.
Terms to know
- contract of employment
- An agreement between an employer and an employee that states the terms and conditions of employment (Black's Law Dictionary, 1927).
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- ef6f6af942e6f372e796-r1-c88990bdd34e2ee2.pdforal argument transcript
Guide generated September 26, 2026. Automated validation accepted this version.