The U.S. House of Representatives has approved a bill that would prohibit employers from enforcing arbitration agreements that workers sign before disputes arise. However, the Democrat-backed measure may face resistance in the Senate because Republican lawmakers have raised concerns about the bill's reach.
The action comes on the heels of a new law banning such agreements for sexual-harassment claims, but the proposed legislation is much more expansive. "It covers essentially all employment disputes and would even apply to many disputes between companies and their independent contractors," noted Nick Chandler, an attorney with Alston & Bird in Atlanta and New York City.
Broad Reach
The Forced Arbitration Injustice Repeal (FAIR) Act, H.R. 963, passed the House in a 222 to 209 vote on March 17. The proposed legislation would broadly ban employers and workers from agreeing in advance to have legal claims decided by a neutral third party—an arbitrator—rather than a court.
"The bill passed in the House with only one Republican voting in favor, so it's unclear to me whether this bill can garner sufficient support to pass in the Senate," Chandler said.
Notably, the Senate declined to pass the bill in 2019, and many business groups, including the Society for Human Resource Management (SHRM), oppose H.R. 963.
"Arbitration provides employees and employers a fair, effective and timely process for resolving workplace disputes," said Emily M. Dickens, SHRM's chief of staff, head...
An Indian national faces multiple charges in the US for falsely claiming citizenship to vote in the 2024 elections, risking a decade in prison. Mukeshkumar Somabhai Chaudhari, an Indian national, ...