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Checking the Box? Supreme Court Holds Order Compelling Arbitration Is Not Immediately Appealable

February 2, 2026

Plaintiffs cannot avoid arbitration through premature appeals challenging the validity of an arbitration agreement. In a landmark decision, the Supreme Court of Pennsylvania, in a 6-0 opinion, recently held that a trial court order compelling arbitration and staying court proceedings does not qualify as an immediately appealable collateral order under Pennsylvania Rule of Appellate Procedure 313. See Chilutti v. Uber Techs., Inc., --- A.3d ---, 2026 WL 156181 (Pa. Jan. 21, 2026). The impact of the Court’s decision clarifies that litigants may not immediately appeal an order compelling arbitration; instead, they must patiently await a final judgment to avail themselves of appellate relief.

Under Pennsylvania law, appellate courts have limited jurisdiction and may entertain appeals from final orders. See Pa.R.A.P. 341(a). In general, a final order disposes of all claims and parties. See Pa.R.A.P. 341(b)(1). Although an order denying a motion to compel arbitration is deemed final for appeal purposes under Pa.R.A.P. 311(b)(8) and 42 Pa. C.S. § 7320(a)(1), an appeal from an order compelling arbitration has no such finality under the Pennsylvania Code. One exception to the “final judgment” rule is the collateral order doctrine. Pennsylvania Rule of Appellate Procedure 313 allows parties to appeal as of right from an interlocutory collateral order. To qualify as a collateral order, (1) the order must be separate from and collateral to the main cause of action; (2) the right involved must be too important to be denied review; and (3) the question presented must be such that if review is postponed until final judgment, the claim will be irreparably lost. Pa.R.A.P. 313(b).

In Chilutti, Plaintiffs Keith and Shannon Chilutti filed a complaint against Uber Technologies, Inc. in the Philadelphia County Court of Common Pleas, alleging Ms. Chilutti sustained injuries during an Uber transport from a medical appointment to her home. In response, Uber filed a petition to compel arbitration, asserting Plaintiffs had agreed to arbitration at the time they enrolled in Uber. On April 26, 2021, the trial court granted Uber’s petition and stayed all court proceedings pending the resolution of arbitration.

The Chiluttis appealed the trial court’s order, arguing that an order granting compelled arbitration qualifies as an immediately appealable collateral order under Pennsylvania Rule of Appellate Procedure 313. The Chiluttis also asserted the Uber arbitration agreement was invalid because it deprived Plaintiffs of their constitutional right to a trial by jury. On appeal, the Superior Court reversed and remanded the trial court’s order, holding first that an order compelling arbitration satisfies the criteria for an immediately appealable collateral order. Chilutti v. Uber Techs., Inc., 300 A.3d 430, 439 (Pa. Super. 2023) (en banc). The Court reasoned that the third requirement for a collateral order was satisfied, as delaying review of a final judgment “may result in the irreparable loss of [the Chiluttis’] claims.” Id. Because the standard of review in common law arbitration appeals would be limited under 42 Pa. C.S. § 7341, the Court determined that appellant satisfied the third prong for collateral appeals under Pennsylvania Rule of Appellate Procedure 313. Id. Based on this reasoning, the Superior Court concluded it had jurisdiction to resolve the merits of the Chiluttis’ claim, and ultimately held the parties did not enter into a valid arbitration agreement. Id.

The Supreme Court of Pennsylvania granted review to determine whether the Superior Court lacked appellate jurisdiction to immediately review an interlocutory order staying litigation pending an arbitration. The Court reversed the lower court’s decision, holding that the Superior Court erred as a matter of law in determining the trial court’s order satisfied the third prong of the collateral order doctrine. Chilutti, 2026 WL 156181 *6. Relying upon the plain language of 42 Pa. C.S. § 7341, the Supreme Court reasoned that the limited standard of review applies only to arbitrators’ awards rendered in nonjudicial arbitration, not trial court decisions or orders. Id. at *5. To this end, because the basis of the Chilutti’s appeal would be predicated on a trial court order—and not a nonjudicial arbitration award—the litigants would not suffer irreparable loss of their rights under Pa.R.A.P. 313(b) by delaying appellate review of a trial court order granting compelled arbitration. Id. Writing for the Court, Justice Brobson opined that “[i]f the Chiluttis are later aggrieved by the final judgment that the trial court enters after the matter is returned to that court following arbitration, then the Chiluttis can appeal that judgment to the Superior Court.” Id. *6. Through this decision, the Court reaffirmed its commitment to the underlying policy of the final order doctrine, which promotes “formality, completeness, and efficiency.” Id. *4. Accordingly, the Superior Court lacked jurisdiction to consider the merits of the claims on appeal regarding the validity of the arbitration agreement. Id. *7.

The ramifications of the Court’s decision in Chilutti are significant for those navigating the complex intersection of arbitration and litigation. The Court’s decision is also a decisive victory for companies seeking to avoid premature appeals of trial court orders enforcing arbitration clauses. Companies and other enterprises should be conscious of appellate courts’ limited jurisdiction when entering into arbitration clauses. In cases where compelled arbitration is ordered by courts pursuant to an arbitration agreement, an immediate collateral appeal may not be taken as of right pursuant to the Supreme Court’s application of Pennsylvania Rule of Appellate Procedure 313(b). Instead, the aggrieved party must await a final order in the trial court (after arbitration proceedings conclude) before seeking appellate relief. The Supreme Court’s decision in Chilutti reinforces the importance of adopting well-drafted arbitration clauses when entering everyday business transactions. It also reaffirms the Pennsylvania judiciary’s fidelity to promoting freedom of contract, including through arbitration clauses, which may ensure confidentiality, reduce cost, and provide an alternative forum for dispute resolution.

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Commonwealth Court Holds That a Claimant Who Was Struck By a Car While Crossing the Street During an Unpaid Break Was In the Course and Scope of Employment

This case involved a claim petition filed by a claimant who sustained injuries after being struck by a vehicle while crossing the street in front of the employer’s premises. The employer denied the claim based on course and scope, as the accident occurred during one of two mandatory fifteen (15) minute breaks provided to the claimant. The claimant would punch out at the beginning of a break and punch back in when the break was over.  On the date of the incident, the claimant punched out and left the building to get lunch at a restaurant, which required her to cross the employer’s parking lot, and then a public street, where the injury occurred. The Workers Compensation Judge (WCJ) dismissed the petition, noting that that during the two mandatory fifteen-minute breaks per shift allowed by the employer, the claimant was free to leave the employer’s premises, and during breaks, permitted to engage in whatever activity she desired. The WCJ found that at the time of the accident, the claimant was on her own time, in the middle of the street, and going to get lunch.   The claimant filed an appeal with the Worker’s Compensation Appeal Board (Board), and the Board reversed.  According to the Board, the claimant’s location was still on the employer’s premises, as the claimant was taking her customary route while using a reasonable ingress/egress from the employer.  Further, the Board found that the “Personal Comfort Doctrine” applied, as the claimant was on a momentary departure to take care of her personal comfort, within the window of time she was allotted for her break.  The Board remanded the case, and a WCJ granted the claim petition.  The Board affirmed, and the employer appealed to the Commonwealth Court. Before the Court, the employer argued that the claimant was not in the course and scope of her employment, because the injury did not occur on its premises, and the claimant was outside the bounds of the Personal Comfort Doctrine. The Court, however, rejected these arguments, and dismissed the employer’s appeal.  The Court noted that the break given to the claimant was so cursory, when she set out to relieve her hunger for her own personal comfort,  she remained in the course of her employment when she sustained her injuries.  A Petition for Allowance of Appeal in the Supreme Court has been filed by the Employer, Giant Eagle.

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New Jersey Workers’ Compensation Legislation Updates

Since June 1, 2026, there have been no new New Jersey workers’ compensation related cases from the Appellate or Supreme Courts. As such, below will highlight any new legislative updates since February. A1023 | S3984 - Medical Use of Cannabis Under Certain Circumstances This requires workers’ compensation, PIP, and health insurance coverage for the medical use of cannabis under certain circumstances. It was introduced on January 13, 2026 and referred to the Assembly Financial Institutions and Insurance Committee. It was also introduced on March 19, 2026 and referred to the Senate Commerce Committee. A1045  - Certain Injuries to Volunteer and Professional Public Safety and Law Enforcement Personnel This revises workers’ compensation coverage for certain injuries to volunteer and professional public safety and law enforcement personnel. It was introduced on January 13, 2026 and referred to the Assembly Labor Committee. A1384 | S2757 - Reduce Statute of Limitations in Medical Fee Disputes This reduces statute of limitations from six years to two years in medical fee disputes in workers’ compensation matters. It was introduced on January 13, 2026 and referred to the Senate Labor Committee. It was also introduced on the same day and referred to the Assembly Labor Committee. A1870 | S1379 - Workers' Compensation Benefits For Certain Workers Due to September 11, 2001 Terrorist Attacks This provides workers’ compensation benefits for certain public safety workers who developed illness or injury as result of responding to September 11, 2001 terrorist attacks. It was introduced on January 13, 2026 and referred to the Assembly Labor Committee. It was also introduced on the same day and referred to the Senate Labor Committee. On February 5, 2026, it was reported from the Senate Committee, 2nd Reading, and referred to the Senate Budget and Appropriations Committee. A2779 | S1521 - Excludes Certain Illegal Aliens This excludes certain illegal aliens from workers’ compensation and temporary disability benefits. It was introduced on January 13, 2026 and referred to the Senate Labor Committee. It was also introduced on the same day and referred to the Assembly Labor Committee. A2792 | S1555 -  Prevent Intoxicated Employees from Workers’ Compensation This prevents intoxicated employees from receiving workers’ compensation. It was introduced on January 13, 2026 and referred to the Senate Labor Committee. It was also introduced on the same day and referred to the Assembly Labor Committee. A3167 | S2372 - Workers’ Compensation Insurance Requirements for Certain Corporations and Partnerships This concerns workers’ compensation insurance requirements for certain corporations and partnerships. It was introduced on January 13, 2026 and referred to the Senate Labor Committee. It was also introduced on the same day and referred to the Assembly Labor Committee. A3548 | S3571 – Maximum Benefits for Certain Volunteers This provides certain volunteer and other workers with maximum compensation benefit for workers' compensation claim regardless of outside employment. It was introduced on January 13, 2026 and referred to the Senate Labor Committee. On March 2, 2026, it was reported from the Senate Committee, 2nd Reading, and referred to the Senate Budget and Appropriations Committee. It was also introduced on the same day and referred to the Assembly Labor Committee. On May 7, 2026, it was reported and referred to Assembly State and Local Government Committee. A3724 - Personal Liability to Employer Officers for Failure to Pay for Coverage This provides personal liability for owner, executive officer, or executive director of employer for failure to pay for workers' compensation coverage. It was introduced on January 13, 2026 and referred to the Assembly Labor Committee. On May 7, 2026, it was reported and referred to Assembly Judiciary Committee. A4617  - Certain Workers' Compensation Supplemental Benefits and Funding Method This concerns certain workers' compensation supplemental benefits and funding method. For a permanently and totally disabled worker or surviving dependents after December 31, 1979, with some exceptions, this bill provides for an annual cost of living adjustment in the weekly workers’ compensation benefit rate. It was introduced on March 10, 2026 and referred to the Assembly Labor Committee. S241 - Inclusion in Database of Appointed Officials This requires that workers’ compensation judges and administrative law judges be included in database of appointed officials. It was introduced on January 13, 2026 to the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee. S2290 -  Mandatory Retirement Age This increases statutory mandatory retirement age for Supreme Court Justices, Superior Court Judges, Tax Court Judges, Administrative Law Judges, and Workers’ Compensation Judges from 70 to 72. It was introduced on January 13, 2026 and referred to the Senate Judiciary Committee. S3144 - Testimony in Workers’ Compensation This concerns submission of testimony in workers’ compensation claims. It was introduced on January 13, 2026 and referred to the Senate Labor Committee. S3342  - Increase Mandatory Retirement Age This increases statutory mandatory retirement age for Supreme Court Justices, Superior Court Judges, Tax Court Judges, Administrative Law Judges, and Workers’ Compensation Judges from 70 to 75. It was introduced on February 5, 2026 and referred to the Senate Judiciary Committee.

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Appellate Court Rejects Horizontal Immunity Defense to Company Not Acting as Statutory Subcontractor

The First District Court of Appeal held that a property management company was not entitled to horizontal immunity under section 440.10(1)(e), Florida Statutes, in a negligence action brought by an employee of another company working on the property. The claimant was injured while servicing a swimming pool at an apartment complex. His employer had contracted with the property owner to maintain the pool. Following the accident, the claimant received workers' compensation benefits through his employer’s carrier. The claimant subsequently filed a negligence action against the property management company, alleging that it failed to maintain the premises in a reasonably safe condition and failed to warn him of a dangerous condition that caused his injuries. The property management company had been retained by the property owner to maintain the complex in good operating condition and to perform routine maintenance and repair work. The property management company argued that it was immune from suit under section 440.10(1)(e) of Florida’s Workers’ Compensation Law. That provision grants immunity to a subcontractor providing services in conjunction with a contractor on the same project or contract work from civil actions brought by employees of another subcontractor, subject to limited exceptions. According to the property management company, it qualified as a subcontractor working on the same project as the claimant’s employer and was therefore entitled to horizontal immunity. The trial court agreed and entered summary judgment in its favor. On appeal, however, the claimant argued, and the appellate court agreed, that horizontal immunity applies only when a contractor has sublet work arising from a contractual obligation owed to a third party. The court noted that prior decisions consistently held that an entity acting solely on its own behalf as the owner of property, rather than pursuant to a contract with a third party, is not a “contractor” under section 440.10(1), even when it hires other companies to perform work on the property. In Teed, the property management company could not establish that the property owner had a primary contractual obligation to a third party to maintain either the apartment complex or the swimming pool, which it then delegated to the claimant’s employer or the property management company. As a result, the property owner did not qualify as a statutory contractor, and the property management company was not a subcontractor entitled to horizontal immunity under section 440.10(1)(e). The First District therefore reversed the lower court’s ruling and remanded the case for further proceedings on the claimant’s negligence claim.