This bill, titled the Forced Arbitration Injustice Repeal Act, aims to significantly alter arbitration law by prohibiting the enforcement of certain predispute agreements. Its primary purpose is to invalidate any predispute arbitration agreement or predispute joint-action waiver concerning future employment, consumer, antitrust, or civil rights disputes. This means individuals would not be forced into arbitration for these types of claims if they had agreed to it before a dispute arose. The legislation defines these dispute categories broadly, encompassing class actions and collective actions under federal and state law. For instance, an employment dispute covers issues arising from work relationships, while a consumer dispute involves individuals seeking goods or services for personal use. A key provision mandates that a court, rather than an arbitrator, will determine whether this chapter applies to a dispute and the validity of any challenged arbitration agreement, even if the agreement attempts to delegate this authority. Furthermore, the bill clarifies that its provisions do not apply to arbitration clauses within collective bargaining agreements between employers and labor organizations. However, it explicitly states that such collective bargaining provisions cannot waive a worker's right to seek judicial enforcement of rights derived from the U.S. Constitution, state constitutions, or federal or state statutes. The Act will take effect upon enactment and apply to any dispute or claim arising on or after that date.
Read twice and referred to the Committee on the Judiciary.
Law
Forced Arbitration Injustice Repeal Act
USA119th CongressS-2799| Senate
| Updated: 9/15/2025
This bill, titled the Forced Arbitration Injustice Repeal Act, aims to significantly alter arbitration law by prohibiting the enforcement of certain predispute agreements. Its primary purpose is to invalidate any predispute arbitration agreement or predispute joint-action waiver concerning future employment, consumer, antitrust, or civil rights disputes. This means individuals would not be forced into arbitration for these types of claims if they had agreed to it before a dispute arose. The legislation defines these dispute categories broadly, encompassing class actions and collective actions under federal and state law. For instance, an employment dispute covers issues arising from work relationships, while a consumer dispute involves individuals seeking goods or services for personal use. A key provision mandates that a court, rather than an arbitrator, will determine whether this chapter applies to a dispute and the validity of any challenged arbitration agreement, even if the agreement attempts to delegate this authority. Furthermore, the bill clarifies that its provisions do not apply to arbitration clauses within collective bargaining agreements between employers and labor organizations. However, it explicitly states that such collective bargaining provisions cannot waive a worker's right to seek judicial enforcement of rights derived from the U.S. Constitution, state constitutions, or federal or state statutes. The Act will take effect upon enactment and apply to any dispute or claim arising on or after that date.