The FAIR Act: A New Bill Banning Mandatory Arbitration Agreements

Concerning the ongoing assault on mandatory arbitration agreements, we recently blogged about the passage of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (P.L. 117-89), colloquially the "MeToo" law. The MeToo law formally amended the Federal Arbitration Act ("FAA") to ban mandatory arbitration agreements for sexual assault and harassment claims. The MeToo law is "partially" retroactive: it bars mandatory arbitration of sexual harassment claims arising from conduct that occurred after the law went into effect, but not of claims where the alleged conduct occurred before the law's passage.

On March 17, 2022, a mere two weeks after the MeToo Law's passage, the U.S. House voted to advance the Forced Arbitration Injustice Repeal, or FAIR Act (H.R. 963), a bill which could effectively void all pre-dispute mandatory arbitration agreements in employment, antitrust, consumer and civil rights disputes as well prohibit waivers of joint, class,