119-hr5350

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5350 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 5350

To amend title 9 of the United States Code with respect to arbitration.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 September 15, 2025

 Mr. Johnson of Georgia (for himself, Ms. Barragan, Ms. Bonamici, Ms. 
 Brownley, Mr. Carson, Mr. Carter of Louisiana, Mr. Casar, Mr. Casten, 
 Mr. Castro of Texas, Ms. Chu, Mr. Cleaver, Ms. Dean of Pennsylvania, 
 Ms. DelBene, Mr. Deluzio, Mr. DeSaulnier, Mr. Doggett, Mrs. Fletcher, 
Mr. Foster, Ms. Lois Frankel of Florida, Mr. Garcia of California, Ms. 
 Garcia of Texas, Mr. Garcia of Illinois, Mr. Golden of Maine, Mr. 
 Gottheimer, Mr. Huffman, Ms. Jayapal, Ms. Kelly of Illinois, Mr. 
 Khanna, Ms. Lee of Pennsylvania, Mr. Lieu, Mr. Magaziner, Ms. 
 McClellan, Ms. McCollum, Mr. McGarvey, Mr. Morelle, Mr. Mrvan, Mr. 
 Neguse, Ms. Norton, Ms. Ocasio-Cortez, Ms. Omar, Mr. Peters, Ms. 
 Pingree, Mr. Pocan, Ms. Pressley, Mr. Quigley, Ms. Ross, Ms. Scanlon, 
 Mr. Sherman, Ms. Simon, Mr. Smith of Washington, Mr. Stanton, Mr. 
 Swalwell, Mr. Thanedar, Ms. Tlaib, Mr. Tonko, Mr. Tran, and Ms. 
Williams of Georgia) 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 2025'' or the ``FAIR Act of 2025''.

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; or
 ``
            (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.
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