Making Sure the FAA Is Applicable

The United States Supreme Court's decision in Circuit City made it clear that under the Federal Arbitration Act, agreements that employers require employees to sign are valid. What this recent decision by the Alabama Supreme Court, Potts v. Baptist Health System, Inc. (Ala. 12/20/02) shows the factual hurdles you must jump (at least in some states) to show that the transaction involved 'substantially affects interstate commerce', the test for the applicability of the FAA.