"New Federal Legislation Seeks to Eliminate Mandatory Arbitration Agreements", 21 Mar 2019

On February 28, 2019, U.S. Representative Hank Johnson (D-GA) and U.S. Senator Richard Blumenthal (D-CT) introduced “The Forced Arbitration Injustice Repeal Act” (“FAIR Act”) which seeks to (1) prohibit pre-dispute arbitration agreements that force arbitration of future employment, consumer, antitrust, or civil rights disputes, and (2) prohibit agreements and practices that interfere with the rights 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...

If enacted, this legislation would drastically alter employer/employee relations nationwide—particularly due to the bill’s rather broad definition of an “employment dispute.” The bill would render unenforceable any arbitration agreement raised in response to a dispute between one or more individuals (or their union)...

Despite its long history and widespread use, however, cultural trends — and particularly the “#MeToo” movement — have led to a strengthening pushback against employers who utilize mandatory arbitration agreements in their hiring. #MeToo advocates argue that mandatory arbitration agreements often keep survivor experiences and perpetrator behaviors secret due to non-disclosure agreements. Largely in reaction to these arguments, several large employers have begun to reassess their use of the agreements, some eliminating them entirely...