Truck Driver Injury Suit Against Non-Subscribing Employer Not Subject to Arbitration

A recent decision from the Texas Court of Appeals for the 8th District reaffirms a key legal carve-out that can significantly affect claims adjusters handling cases involving transportation workers. The court ruled that Adan Romo, a truck driver injured on the job, cannot be compelled to arbitrate his personal injury claims against LKQ Automotive, a company that opted out of the state’s workers compensation system.

Romo signed an injury benefit plan with arbitration provisions when he was hired. Despite not challenging the agreement’s scope or validity, he invoked the transportation worker exemption under the Federal Arbitration Act (FAA), arguing that his role in moving goods across state lines excluded him from mandatory arbitration. The court agreed, citing his involvement in interstate commerce and reinforcing the principle that truck drivers qualify as transportation workers under the FAA.

This ruling underscores a crucial liability consideration for adjusters working with nonsubscriber employers in Texas or similar jurisdictions. When a company opts out of workers comp and relies on arbitration agreements, the enforceability of those agreements can hinge on federal classifications like the transportation worker exception. Claims professionals should be aware that even valid, signed arbitration agreements may not be enforceable if federal exemptions apply.

Adjusters involved in commercial transport claims, especially in nonsubscriber contexts, need to evaluate not just contract terms but also the nature of the claimant’s job duties. The decision highlights how job classifications intersect with procedural defenses, shaping both litigation risk and claim strategy.