119-s2799

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2799 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2799

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

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 15, 2025

 Mr. Blumenthal (for himself, Ms. Baldwin, Mr. Bennet, Ms. Blunt 
 Rochester, Mr. Booker, Ms. Cantwell, Mr. Coons, Ms. Cortez Masto, Ms. 
 Duckworth, Mr. Durbin, Mrs. Gillibrand, Ms. Hassan, Mr. Heinrich, Ms. 
 Hirono, Mr. Kaine, Ms. Klobuchar, Mr. Lujan, Mr. Markey, Mr. Murphy, 
Mrs. Murray, Mr. Padilla, Mr. Peters, Mr. Reed, Ms. Rosen, Mr. Sanders, 
 Mr. Schatz, Mr. Schiff, Mrs. Shaheen, Ms. Smith, Mr. Van Hollen, Mr. 
 Warnock, Ms. Warren, Mr. Welch, Mr. Whitehouse, and Mr. Wyden) 
introduced the following bill; which was read twice and 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''.

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 (15 U.S.C. 12

    (a) )) 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 a 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 1 party alleging a 
 violation described in subparagraph
        (A) is an 
 individual (or an authorized representative of an 
 individual), including an individual 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) 1 or more individuals, including an 
 individual who seeks certification as a class under 
 rule 23 of the Federal Rules of Civil Procedure or a 
 comparable rule or provision of State law, 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; 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'--
 ``
        (A) means a dispute between 1 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
 ``
        (B) includes--
 ``
            (i) 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
 ``
            (ii) a dispute in which an individual 
 seeks 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 (29 U.S.C. 216

    (b) ), 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 ``of individuals, regardless of whether the 
 individuals are designated as employees or independent 
 contractors for other purposes'';
        (B) in 

section 2, by inserting ``or 5'' before the 
 period at the end;
            (C) in 

section 208, in the second sentence, by 
 inserting ``or 5'' before the period at the end; and
            (D) in 

section 307, in the second sentence, by 
 inserting ``or 5'' before the period at the end.

    (2) Table of chapters.--The table of chapters of title 9, 
 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.
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