Should corporations be prohibited from using mandatory pre-dispute arbitration agreements?

Civil Rights Labor, Jobs, and Commerce
Forced Arbitration Injustice Repeal (FAIR) Act (HR 1423)
This bill has Passed the House of Representatives
Bill Summary

This bill prohibits businesses and corporations from imposing mandatory pre-dispute arbitration agreements upon their employees and subsequently apply the agreements to employment, consumer, antitrust, or civil rights disputes. Arbitration is the use of a third-party entity to settle a dispute. Arbitration is used in lieu of a settlement in court. These agreements would be allowed in all cases except those listed above. Sponsor: Rep. Hank Johnson (Democrat, Georgia, District 4)
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Opponents say

• “The use of pre-dispute arbitration clauses in contracts benefits consumers, small businesses and employees. For example, a recent study by the Institute for Legal Reform found that employees prevailed three times more often, recovered twice as much money, and resolved their claims more quickly in arbitration than in litigation. In addition, courts work to ensure that arbitration agreements of all types are fair and do not provide an untoward advantage to any party.” - U.S. Chamber of Commerce

Proponents say

• “Forced arbitration agreements undermine our indelible Constitutional right to trial by jury, benefiting powerful businesses at the expense of American consumers and workers” - Rep Hank Johnson, Democrat, Georgia, District 4
• “One of the systems that is truly rigged against consumers, workers, and the American people is our current system of forced arbitration. Forced arbitration is unfair, unjust, and un-American. One of the fundamental principles of our American democracy is that everyone gets their day in court. Forced arbitration deprives Americans of that basic right. This kind of injustice has to end. The Forced Arbitration Injustice Repeal Act is a measure whose time has come.” - Sen Richard Blumenthal, Democrat, Connecticut
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