Forced Arbitration Injustice Repeal Act
Sen. Blumenthal Introduces the FAIR Act to End Forced Arbitration
This bill was recently introduced in the Senate and is currently being reviewed by the Committee on the Judiciary. It is in the early stages of the lawmaking process and has not yet been scheduled for a vote. The bill is considered active as it waits for the committee to decide on its next steps.
Passage Likelihood
Legislative Progress
Key Points
- This bill bans companies from forcing workers and consumers to sign arbitration agreements before any dispute has occurred. These forced arbitration clauses are commonly buried in the fine print of employment contracts, user agreements, and terms of service.
From policy text
“no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to an employment dispute, consumer dispute, antitrust dispute, or civil rights dispute.”
View in full text - The bill covers four broad categories of disputes: employment, consumer, antitrust (competition law), and civil rights. This means people could take companies to court for workplace discrimination, wage theft, defective products, anti-competitive behavior, and more.
From policy text
“prohibit predispute arbitration agreements that force arbitration of future employment, consumer, antitrust, or civil rights disputes”
View in full text - The law protects the right to join class action and collective lawsuits. Companies could no longer require workers or customers to waive their ability to band together in legal actions, a tool that is often the only practical way to challenge widespread but small-dollar harm.
From policy text
“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.”
View in full text - Coverage extends beyond traditional employees to include independent contractors and gig workers. The bill redefines protections to cover anyone in a work relationship, regardless of how they are classified.
From policy text
“a dispute regarding the terms of or payment for, advertising of, recruiting for, referring of, arranging for, or discipline or discharge in connection with, such work, regardless of whether the individual is or would be classified as an employee or an independent contractor”
View in full text - Courts, not private arbitrators, would decide whether a case falls under this law. This prevents companies from using their own arbitration agreements to block disputes from ever reaching a judge.
From policy text
“The applicability of this chapter to an agreement to arbitrate and the validity and enforceability of an agreement to which this chapter applies shall be determined by a court, rather than an arbitrator”
View in full text - The bill would take effect immediately upon enactment and apply to any dispute arising after that date. Existing arbitration clauses in current contracts would become unenforceable for future disputes in the covered categories.
From policy text
“This Act, and the amendments made by this Act, shall take effect on the date of enactment of this Act and shall apply with respect to any dispute or claim that arises or accrues on or after such date.”
View in full text
Impact Analysis
Personal Impact
Milestones
Read twice and referred to the Committee on the Judiciary.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Related News
5 articlesBill would let racial discrimination victims bypass forced arbitration
Democratic U.S. Reps. Wesley Bell and Hank Johnson, along with Sen. Cory Booker, introduced the 'Ending Forced Arbitration of Race Discrimination Act' to allow workers and consumers to take racial discrimination claims to court rather than being limited to private arbitration.
Emerging Trends in Employment Arbitration in 2026: What Employers Need to Know
Federal legislation is regularly proposed to expand carveouts for arbitration. The Forced Arbitration Injustice Repeal (FAIR) Act, proposed in September 2025, would prohibit predispute arbitration agreements for employment, consumer, antitrust, or civil rights disputes.
In the Congressional Crosshairs: Arbitration Agreements and Class Action Waivers
The FAIR Act would amend the FAA to expressly invalidate predispute arbitration agreements and class action waivers in employment, consumer, antitrust, and civil rights disputes. The bill would invalidate these agreements even if they were signed before the bill's passage.
Source Information
Document Type
Congressional Bill
Official Title
Forced Arbitration Injustice Repeal Act
Data Sources
Sponsor
Cosponsors
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