Forced Arbitration Injustice Repeal Act of 2023 or the FAIR Act of 2023
This bill prohibits a predispute arbitration agreement from being valid or enforceable if it requires arbitration of an employment, consumer, antitrust, or civil rights dispute.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2953 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 2953
To amend title 9 of the United States Code with respect to arbitration.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 27, 2023
Mr. Johnson of Georgia (for himself, Ms. Tlaib, Ms. Schakowsky, Ms.
Velazquez, Mr. Doggett, Ms. Moore of Wisconsin, Mr. Thanedar, Mr.
Mfume, Ms. Pingree, Mr. Nadler, Mr. Schiff, Ms. Ross, Ms. Lois Frankel
of Florida, Mr. Beyer, Ms. Norton, Ms. Brownley, Ms. Bonamici, Mr.
Boyle of Pennsylvania, Ms. Scanlon, Mr. Swalwell, Mr. Carson, Mr.
Evans, Ms. Bush, Ms. Crockett, Mr. Garcia of Illinois, Mr. Foster, Mr.
Sarbanes, Mr. Quigley, Mr. DeSaulnier, Mr. Robert Garcia of California,
Mrs. Trahan, Mr. Cardenas, Mr. Gomez, Mr. Higgins of New York, Ms.
DeGette, Ms. Porter, Mr. Casar, Mr. Trone, Mr. Stanton, Mr. Phillips,
Ms. McCollum, Mr. Espaillat, Mr. Allred, Mr. Golden of Maine, Mr.
Cohen, Mr. Casten, Ms. Garcia of Texas, Ms. Stevens, Mrs. McBath, Mr.
Payne, Ms. Kamlager-Dove, Ms. Dean of Pennsylvania, Ms. Pressley, Ms.
Wexton, Ms. Lee of California, Mr. Sherman, Mr. Scott of Virginia, Mr.
Goldman of New York, Ms. Omar, Mr. Gottheimer, Mrs. McClellan, Ms.
Jayapal, Mr. Cartwright, Mr. Krishnamoorthi, Mr. Carter of Louisiana,
Mr. Kildee, Ms. Sanchez, Ms. Leger Fernandez, Mr. Pocan, Mr. Tonko, Ms.
Wilson of Florida, Ms. Williams of Georgia, Ms. Kuster, Mr. Cleaver,
Ms. Barragan, Mr. Norcross, Ms. Blunt Rochester, Mr. Keating, Mr. Smith
of Washington, Ms. Scholten, Mr. Soto, Mr. Kilmer, Mr. Neguse, and Mr.
Morelle) introduced the following bill; which was referred to the
Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 9 of the United States Code with respect to arbitration.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Forced Arbitration Injustice Repeal
Act of 2023'' or the ``FAIR Act of 2023''.
SEC. 2. PURPOSES.
The purposes of this Act are to--
(1) prohibit predispute arbitration agreements that force
arbitration of future employment, consumer, antitrust, or civil
rights disputes; and
(2) 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.
SEC. 3. ARBITRATION OF EMPLOYMENT, CONSUMER, ANTITRUST, AND CIVIL
RIGHTS DISPUTES.
(a) In General.--Title 9 of the United States Code is amended by
adding at the end the following:
``CHAPTER 5--ARBITRATION OF EMPLOYMENT, CONSUMER, ANTITRUST, AND CIVIL
RIGHTS DISPUTES
``Sec.
``501. Definitions.
``502. No validity or enforceability.
``Sec. 501. Definitions
``In this chapter--
``(1) the term `antitrust dispute' means a dispute--
``(A) arising from an alleged violation of the
antitrust laws (as defined in subsection (a) of the
first section of the Clayton Act) or State antitrust
laws; and
``(B) in which the plaintiffs seek certification as
a class under rule 23 of the Federal Rules of Civil
Procedure or a comparable rule or provision of State
law;
``(2) the term `civil rights dispute' means a dispute--
``(A) arising from an alleged violation of--
``(i) the Constitution of the United States
or the constitution of a State;
``(ii) any Federal, State, or local law
that prohibits discrimination on the basis of
race, sex, age, gender identity, sexual
orientation, disability, religion, national
origin, or any legally protected status in
education, employment, credit, housing, public
accommodations and facilities, voting, veterans
or servicemembers, health care, or a program
funded or conducted by the Federal Government
or State government, including any law referred
to or described in section 62(e) of the
Internal Revenue Code of 1986, including parts
of such law not explicitly referenced in such
section but that relate to protecting
individuals on any such basis; and
``(B) in which at least one party alleging a
violation described in subparagraph (A) is one or more
individuals (or their authorized representative),
including one or more individuals seeking certification
as a class under rule 23 of the Federal Rules of Civil
Procedure or a comparable rule or provision of State
law;
``(3) the term `consumer dispute' means a dispute between--
``(A) one or more individuals who seek or acquire
real or personal property, services (including services
related to digital technology), securities or other
investments, money, or credit for personal, family, or
household purposes including an individual or
individuals who seek certification as a class under
rule 23 of the Federal Rules of Civil Procedure or a
comparable rule or provision of State law; and
``(B)(i) the seller or provider of such property,
services, securities or other investments, money, or
credit; or
``(ii) a third party involved in the selling,
providing of, payment for, receipt or use of
information about, or other relationship to any such
property, services, securities or other investments,
money, or credit;
``(4) the term `employment dispute' means a dispute between
one or more individuals (or their authorized representative)
and a person arising out of or related to the work relationship
or prospective work relationship between them, including a
dispute regarding the terms of or payment for, advertising of,
recruiting for, referring of, arranging for, or discipline or
discharge in connection with, such work, regardless of whether
the individual is or would be classified as an employee or an
independent contractor with respect to such work, and including
a dispute arising under any law referred to or described in
section 62(e) of the Internal Revenue Code of 1986, including
parts of such law not explicitly referenced in such section but
that relate to protecting individuals on any such basis, and
including a dispute in which an individual or individuals seek
certification as a class under rule 23 of the Federal Rules of
Civil Procedure or as a collective action under section 16(b)
of the Fair Labor Standards Act, or a comparable rule or
provision of State law;
``(5) the term `predispute arbitration agreement' means an
agreement to arbitrate a dispute that has not yet arisen at the
time of the making of the agreement; and
``(6) the term `predispute joint-action waiver' means an
agreement, whether or not part of a predispute arbitration
agreement, that would prohibit, or waive the right of, one of
the parties to the agreement to participate in a joint, class,
or collective action in a judicial, arbitral, administrative,
or other forum, concerning a dispute that has not yet arisen at
the time of the making of the agreement.
``Sec. 502. No validity or enforceability
``(a) In General.--Notwithstanding any other provision of this
title, no predispute arbitration agreement or predispute joint-action
waiver shall be valid or enforceable with respect to an employment
dispute, consumer dispute, antitrust dispute, or civil rights dispute.
``(b) Applicability.--
``(1) In general.--An issue as to whether this chapter
applies with respect to a dispute shall be determined under
Federal law. The applicability of this chapter to an agreement
to arbitrate and the validity and enforceability of an
agreement to which this chapter applies shall be determined by
a court, rather than an arbitrator, irrespective of whether the
party resisting arbitration challenges the arbitration
agreement specifically or in conjunction with other terms of
the contract containing such agreement, and irrespective of
whether the agreement purports to delegate such determinations
to an arbitrator.
``(2) Collective bargaining agreements.--Nothing in this
chapter shall apply to any arbitration provision in a contract
between an employer and a labor organization or between labor
organizations, except that no such arbitration provision shall
have the effect of waiving the right of a worker to seek
judicial enforcement of a right arising under a provision of
the Constitution of the United States, a State constitution, or
a Federal or State statute, or public policy arising
therefrom.''.
(b) Technical and Conforming Amendments.--
(1) In general.--Title 9 of the United States Code is
amended--
(A) in section 1 by striking ``of seamen,'' and all
that follows through ``interstate commerce'' and
inserting in its place ``of individuals, regardless of
whether such individuals are designated as employees or
independent contractors for other purposes'';
(B) in section 2 by striking ``chapter 4'' and
inserting ``chapter 4 or 5'';
(C) in section 208 by striking ``chapter 4'' and
inserting ``chapter 4 or 5''; and
(D) in section 307 by striking ``chapter 4'' and
inserting ``chapter 4 or 5''.
(2) Table of chapters.--The table of chapters of title 9 of
the United States Code is amended by adding at the end the
following:
``5. Arbitration of Employment, Consumer, Antitrust, and 501''.
Civil Rights Disputes.
SEC. 4. EFFECTIVE DATE.
This Act, and the amendments made by this Act, shall take effect on
the date of enactment of this Act and shall apply with respect to any
dispute or claim that arises or accrues on or after such date.
SEC. 5. RULE OF CONSTRUCTION.
Nothing in this Act, or the amendments made by this Act, shall be
construed to prohibit the use of arbitration on a voluntary basis after
the dispute arises.
<all>
Sponsor introductory remarks on measure. (CR H1935)
Sponsor introductory remarks on measure. (CR H2042)
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
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