Legislation Banning Mandatory Arbitration Heads to Floor Vote

Legislation that would prohibit mandatory arbitration agreements in employment, consumer, and other contracts advanced out of the House Judiciary Committee Sept. 10, with a vote of 22 to 14. It now heads to the House floor.

The Forced Arbitration Injustice Repeal Act (H.R. 1423, S. 610) would invalidate a predispute arbitration agreement if it requires arbitration of an employment, consumer, antitrust, or civil rights dispute. The proposal was introduced in February by Rep. Hank Johnson (D-Ga.).

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