U.S. House Passes Bill That Places Future Of Arbitration Agreements At Risk

It's only been two weeks since President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the "Ending Forced Arbitration Act") into law (which we covered here), and there is already a new major development in the world of arbitration. Yesterday, the U.S. House passed the Forced Arbitration Injustice Repeal ("FAIR") Act of 2022 (H.R. 963), which puts the future of many, if not all, arbitration agreements in jeopardy.

The potential consequences of this act are far-reaching and extend well beyond employment matters. The FAIR Act, if passed, would invalidate predispute arbitration agreements in employment, consumer, antitrust, and civil rights disputes. It would also prohibit agreements and practices that prevent individuals from participating in a class or collective action in such matters. As a result, arbitration agreements and class action waivers would be prohibited in a wide variety of agreements, implicating