Forced Arbitration Would Be Barred Under Democratic Bill

Legislation to ban companies from using forced arbitration in disputes with workers was unveiled by Democratic lawmakers, who seized on the recent negative public attention on employers’ use of it for handling sexual harassment and other on-the-job issues.

The Forced Arbitration Injustice Repeal Act was announced Feb. 28 by Sen. Richard Blumenthal (D-Conn.), and Reps. Jerrold Nadler (D-N.Y.) and Hank Johnson (D-Ga.). Mandatory arbitration clauses are common and generally compel employees and customers to waive their right to sue in favor of a sort of dispute negotiation process in cases of corporate abuse.

The bill isn’t likely to move in ...