ATA Celebrates Passage of SB1514 in Arizona Legislature
Urges Governor Hobbs to Sign Bipartisan Bill Supporting Legal Certainty, Economic Stability, and Fairness for Workers
The Arizona Trucking Association (ATA) applauds the Arizona Legislature for passing SB1514, a bipartisan measure that restores clarity and predictability to employer-employee arbitration agreements in the wake of the Ninth Circuit’s Ortiz decision. With strong support in both chambers — 34–25 in the House and 18–12 in the Senate — ATA now calls on Governor Katie Hobbs to sign the bill into law without delay.
A Targeted Fix to a Specific Problem
SB1514 responds directly to legal uncertainty created by Ortiz v. Randstad Inhouse Services, LLC (2024), which excluded certain warehouse employees from coverage under the Federal Arbitration Act (FAA). The Ninth Circuit noted that arbitration might still be valid under state law — but Arizona, unlike every other Ninth Circuit state, currently has no statute to support these agreements.
SB1514 ensures that Arizona businesses and workers can rely on arbitration agreements that have existed and functioned effectively for over a century. The legislation restores a key dispute resolution mechanism critical to Arizona’s warehousing, distribution, and logistics economy.
Fairness for Workers and Clarity for Employers
To address concerns raised by labor stakeholders, including the Teamsters, the bill was amended to strengthen worker protections:
- Workers retain the right to file claims with government agencies
- Union members are explicitly exempt (collective bargaining agreements remain unaffected)
- Employers, not employees, are responsible for the bulk of arbitration costs, preserving accessibility
Protecting Jobs and Legal Certainty
“SB1514 represents the kind of balanced policy that supports job creation, legal clarity, and fairness,” said Tony Bradley, President and CEO of the Arizona Trucking Association. “It ensures Arizona workers maintain access to a faster, more affordable path for resolving disputes, while providing businesses the certainty they need to operate and grow.”
“On behalf of the Arizona Trucking Association’s members, we respectfully urge Governor Hobbs to sign SB1514 into law,” Bradley continued. “This bill reflects months of stakeholder collaboration, bipartisan cooperation, and sound legal policy. Arizona’s workers and employers deserve nothing less.”
In closing, we’d like extend our special thanks to Senator Kevin Payne for sponsoring the legislation, and to all legislators who voted in favor.
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