Forced Arbitration Injustice Repeal Act

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.
• 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.
• 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.
• 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.
• 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.
• 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.

Votes

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