Because of the widespread use of arbitration clauses in employment and consumer agreements, Congress seeks to rein in their use. The most ire was brought on by the use of these agreements to prevent employees and consumers from bringing class action lawsuits. To address these concerns, the U.S. Rep. Hank Johnson (D-GA) and U.S. Sen. Richard Blumenthal (D-CT) introduced the Forced Arbitration Injustice Repeal Act (“FAIR Act”) to eliminate forced arbitration clauses in employment, consumer, and civil rights cases, while allowing agreements to arbitration after a dispute occurs.
Specifically, the FAIR Act would amend title 9 of the United States Code with respect to arbitration and “prohibit predispute arbitration agreements that force arbitration of future employment, consumer, antitrust, or civil rights disputes” and “prohibit agreements and practices that interfere with the right of individuals, workers, and small businesses to participate in a joint, class, or collective action related to an employment, consumer, antitrust, or civil rights dispute.”