Daily Labor Report®

House Passes Ban on Forced Arbitration, Class Action Limits

Sept. 20, 2019, 3:25 PM

The House Sept. 20 passed legislation that would prohibit mandatory arbitration agreements in employment, consumer, and other contracts.

Lawmakers voted 225 to 186 in favor of the Forced Arbitration Injustice Repeal Act (H.R. 1423, S. 610), which would invalidate predispute agreements that require arbitration of an employment, consumer, antitrust, or civil rights dispute. The proposal, introduced in February by Rep. Hank Johnson (D-Ga.), would also ban limits on class and collective action lawsuits by workers, consumers, and others.

Mandatory arbitration clauses are common in many contracts and generally compel employees or customers to waive their right to...

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