Forced Arbitration Injustice Repeal Act
Summary
The Forced Arbitration Injustice Repeal Act aims to amend Title 9 of the United States Code to prohibit predispute arbitration agreements and predispute joint-action waivers in employment, consumer, antitrust, and civil rights disputes. This means that individuals, workers, and small businesses would not be forced to arbitrate these types of disputes and could participate in joint, class, or collective actions. The bill defines key terms like 'antitrust dispute,' 'civil rights dispute,' 'consumer dispute,' 'employment dispute,' 'predispute arbitration agreement,' and 'predispute joint-action waiver'.
Expected Effects
If enacted, the bill would invalidate existing predispute arbitration agreements and joint-action waivers related to employment, consumer, antitrust, and civil rights disputes, giving individuals and entities more options for resolving these disputes. It would shift the decision-making power from arbitrators to courts regarding the applicability and enforceability of arbitration agreements under the proposed chapter 5 of Title 9. Collective bargaining agreements between employers and labor organizations would be exempt, except that they cannot waive a worker's right to seek judicial enforcement of constitutional, statutory, or public policy rights.
Potential Benefits
- Enhanced Individual Rights: Protects individuals' rights to pursue legal action in court rather than being forced into arbitration.
- Increased Accountability: Holds corporations and employers more accountable for potential wrongdoing in employment, consumer, antitrust, and civil rights contexts.
- Empowered Workers and Consumers: Gives workers and consumers greater leverage in disputes by allowing them to participate in class actions and collective actions.
- Fairer Dispute Resolution: Ensures disputes are resolved in a more transparent and equitable forum, potentially leading to fairer outcomes.
- Strengthened Civil Rights Protections: Reinforces protections against discrimination and other civil rights violations by ensuring access to judicial remedies.
Potential Disadvantages
- Increased Litigation: May lead to a surge in litigation as more individuals and businesses pursue court action instead of arbitration.
- Potential for Frivolous Lawsuits: Could encourage frivolous lawsuits, burdening the court system and increasing legal costs for businesses.
- Uncertainty for Businesses: May create uncertainty for businesses that rely on arbitration agreements to manage disputes efficiently.
- Increased Costs for Consumers: Businesses may pass on increased litigation costs to consumers through higher prices.
- Complexity in Implementation: Defining and applying the terms 'employment dispute,' 'consumer dispute,' 'antitrust dispute,' and 'civil rights dispute' may lead to legal challenges and inconsistent interpretations.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with constitutional principles by protecting individual rights and access to justice. While the Constitution does not explicitly address arbitration, the Seventh Amendment guarantees the right to a jury trial in civil cases. This bill strengthens that right by limiting forced arbitration, ensuring individuals can choose to pursue their claims in court. The bill also reinforces the principles of due process and equal protection under the law, as enshrined in the Fifth and Fourteenth Amendments, by providing a fairer dispute resolution process for those who have been wronged.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).