House Judiciary Committee Passes Bill Banning All Arbitration Agreements

Employment Law

With a near party-line vote, the House Judiciary Committee passed the Forced Arbitration Injustice Repeal Act (H.R. 1423), which would prohibit mandatory predispute arbitration agreements in all employment, consumer, antitrust, and civil rights disputes.

The bill would also prohibit agreements and practices that interfere with the right of individuals, workers, and small businesses to participate in a joint, class, or collective action related to an employment, consumer, antitrust, or civil rights dispute.

The FAIR Act would not bar arbitration altogether, but it would make it voluntary.

Outlook:  Although the bill is expected to pass the House (it has 222 cosponsors, with one GOP member) before the end of September, it is unlikely to move in the Senate despite there being some interest by a few GOP Senators to do something regarding arbitration in sexual harassment disputes.