Democrats Introduce Bills to Prohibit Mandatory Arbitration Agreements

House and Senate Democrats introduced a pair of bills to prohibit the use of mandatory pre-dispute arbitration agreements in the workplace. 

Representative Hank Johnson (D-GA) and Senator Blumenthal (D-CT) introduced the Forced Arbitration Injustice Repeal (FAIR) Act (H.R. 2953/S. 1376) in the House and Senate, respectively. The FAIR Act would prohibit predispute arbitration agreements in civil rights, antitrust, consumer, and employment disputes. It would also prohibit class action waivers. The House bill currently has 83 cosponsors, and the Senate bill has 37 cosponsors. There are no Republican cosponsors of the bills.  

In addition, Representatives Colin Allred (D-TX) and Hank Johnson (D-GA) and Senators Cory Booker (D-NJ), Kirsten Gillibrand (D-NY), and Dick Durbin (D-IL) introduced a new bill, the Ending Forced Arbitration of Race Discrimination Act (H.R. 3038 / S. 1408). This bill would prohibit arbitration agreements at the election of the plaintiff for race discrimination disputes, which are defined to include disputes related to conduct alleged to constitute discrimination (including harassment) or retaliation on the basis of race, color, or national origin.

Outlook:  The FAIR Act was previously introduced and passed the House in 2019 almost entirely along party lines. The bill subsequently stalled in the Senate chamber. This time around, with Republican control of the House, and without enough Democrats in the Senate to overcome a 60-vote filibuster, partisan legislation such as the FAIR Act and the Ending Forced Arbitration of Race Discrimination Act will not garner enough support for passage. The Association will keep members informed of any relevant updates and will advocate against these bills as they move through the legislative process.