Congress Again Proposes Ban on Mandatory Pre-dispute Arbitration

The Arbitration Fairness Act (S. 987, H.R. 1873) has been re-introduced in Congress. This Act would amend the Federal Arbitration Act (FAA) by banning mandatory, pre-dispute arbitration agreements in employment, consumer, and civil rights matters. The FAA would apply only to disputes between commercial entities. Under the Act, workers and consumers would therefore only be able to consent to arbitration after a dispute arises. The Act seeks to overturn recent U.S. Supreme Court decisions that have broadened the intended scope of the Federal Arbitration Act. The legislation is pending.