US House approves ban on mandatory arbitration News
jensjunge / Pixabay
US House approves ban on mandatory arbitration

The US House of Representatives on Friday approved a 2018 act disallowing mandatory arbitration of workers’ legal claims.

The bill, entitled the “Arbitration Fairness Act,” or the “The FAIR Act” for short, would prohibit employers from forcing their employees to sign arbitration agreements as a condition of employment.

Mandatory arbitration typically prevents employees from bringing claims against their employers for wrongs such as sexual harassment or unpaid wages. According to the bill’s findings: “Most consumers and employees have little or no meaningful choice whether to submit their claims to arbitration. Often, consumers and employees are not even aware that they have given up their rights.”

This is the first time Congress has voted on this issue, but the bill’s future in the Senate is uncertain.