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The FAIR Act defines arbitration clauses as "pre-dispute arbitration agreements" and aims to broadly end arbitration agreements for both consumers and employees. The act is planned as an amendment to the Title 9 of the United States Code, under which the new regulations would become Chapter 4.
Section 402, titled "No validity or enforceability", bans predispute arbitration agreements, as well as any predispute class action waivers in disputes regarding employment, trusts, civil rights, and/or in the sale of property and/or the usage of a service. The bill does not apply to contracts between employers and labor organizations, or between labor organizations, except if the provisions of the contract deprives workers of the right to seek judicial enforcement.
The act additionally amends Title 9 in the phrasings in section 1, 2, 208, and 307 to avoid conflict between sections and the new Chapter 4. [6]
Arbitration, in the context of the law of the United States, is a form of alternative dispute resolution. Specifically, arbitration is an alternative to litigation through which the parties to a dispute agree to submit their respective evidence and legal arguments to a third party for resolution. In practice, arbitration is generally used as a substitute for litigation. In some contexts, an arbitrator has been described as an umpire.
The Labor Management Relations Act of 1947, better known as the Taft–Hartley Act, is a United States federal law that restricts the activities and power of labor unions. It was enacted by the 80th United States Congress over the veto of President Harry S. Truman, becoming law on June 23, 1947.
In the context of labor law in the United States, the term right-to-work laws refers to state laws that prohibit union security agreements between employers and labor unions. Such agreements can be incorporated into union contracts to require employees who are not union members to contribute to the costs of union representation. Unlike the right to work definition as a human right in international law, U.S. right-to-work laws do not aim to provide a general guarantee of employment to people seeking work but rather guarantee an employee's right to refrain from being a member of a labor union.
Australian labour law sets the rights of working people, the role of trade unions, and democracy at work, and the duties of employers, across the Commonwealth and in states. Under the Fair Work Act 2009, the Fair Work Commission creates a national minimum wage and oversees National Employment Standards for fair hours, holidays, parental leave and job security. The FWC also creates modern awards that apply to most sectors of work, numbering 150 in 2024, with minimum pay scales, and better rights for overtime, holidays, paid leave, and superannuation for a pension in retirement. Beyond this floor of rights, trade unions and employers often create enterprise bargaining agreements for better wages and conditions in their workplaces. In 2024, collective agreements covered 15% of employees, while 22% of employees were classified as "casual", meaning that they lose many protections other workers have. Australia's laws on the right to take collective action are among the most restrictive in the developed world, and Australia does not have a general law protecting workers' rights to vote and elect worker directors on corporation boards as do most other wealthy OECD countries.
The United States Arbitration Act, more commonly referred to as the Federal Arbitration Act or FAA, is an act of Congress that provides for non-judicial facilitation of private dispute resolution through arbitration. It applies in both state courts and federal courts, as was held in Southland Corp. v. Keating. It applies in all contracts, excluding contracts of seamen, railroad employees, or any other class of workers involved in foreign or interstate commerce, and it is predicated on an exercise of the Commerce Clause powers granted to Congress in the U.S. Constitution.
In contract law, an arbitration clause is a clause in a contract that requires the parties to resolve their disputes through an arbitration process. Although such a clause may or may not specify that arbitration occur within a specific jurisdiction, it always binds the parties to a type of resolution outside the courts, and is therefore considered a kind of forum selection clause.
Arbitration is a formal method of dispute resolution involving a neutral third party who makes a binding decision. The third party neutral renders the decision in the form of an 'arbitration award'. An arbitration decision or award is legally binding on both sides and enforceable in the courts, unless all parties stipulate that the arbitration process and decision are non-binding.
The Employee Free Choice Act is the name for several legislative bills on US labor law which have been proposed and sometimes introduced into one or both chambers of the U.S. Congress.
The Fair Labor Standards Act of 1938 29 U.S.C. § 203 (FLSA) is a United States labor law that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits employment of minors in "oppressive child labor". It applies to employees engaged in interstate commerce or employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer can claim an exemption from coverage. The Act was enacted by the 75th Congress and signed into law by President Franklin D. Roosevelt in 1938.
14 Penn Plaza LLC v. Pyett, 556 U.S. 247 (2009), is a United States labor law case decided by the United States Supreme Court on the rights of unionized workers to sue their employer for age discrimination. In this 2009 decision, the Court decided that whenever a union contract "clearly and unmistakably" requires that all age discrimination claims under the Age Discrimination in Employment Act of 1967 (ADEA) be decided through arbitration, then employees subject to that contract cannot have those claims heard in court.
Disputes between consumers and businesses that are arbitrated are resolved by an independent neutral arbitrator rather than in court. Although parties can agree to arbitrate a particular dispute after it arises or may agree that the award is non-binding, most consumer arbitrations occur pursuant to a pre-dispute arbitration clause where the arbitrator's award is binding.
The Workplace Democracy Act is a proposed US labor law, that has been sponsored by Bernie Sanders and re-introduced from 1992 to 2018. Among its different forms, it would have removed obstacles to employers making collective agreements, established an impartial National Public Employment Relations Commission to support fair collective bargaining, required that pensions plans are jointly managed by employee and employer representatives, changed the definition of an "employee" to ensure every person who works for other people has labor rights, and repeal all "right to work" laws.
The Arbitration Fairness Act of 2011 is a proposed law in the US Congress to reverse the effects of 14 Penn Plaza LLC v. Pyett and AT&T Mobility v. Concepcion. Both judgments held, 5 judges to 4 dissenting justices, that employees and consumers were not entitled to claim for rights in public courts if they had agreed to arbitration in a collective or individual agreement. The result has been negation of statutory rights by contract.
Epic Systems Corp. v. Lewis, 584 U.S. ___ (2018), was a case decided by the Supreme Court of the United States on how two federal laws, the National Labor Relations Act (NLRA) and the Federal Arbitration Act (FAA), relate to whether employment contracts can legally bar employees from collective arbitration. The Supreme Court had consolidated three cases, Epic Systems Corp. v Lewis, Ernst & Young LLP v. Morris (16-300), and National Labor Relations Board v. Murphy Oil USA, Inc. (16-307). In a 5–4 decision issued in May 2018, the Court ruled that arbitration agreements requiring individual arbitration and prohibiting class action lawsuits are enforceable under the FAA, regardless of allowances set out within the NLRA.
The Families First Coronavirus Response Act is an Act of Congress meant to respond to the economic impacts of the ongoing COVID-19 pandemic. The act provides funding for free coronavirus testing, 14-day paid leave for American workers affected by the pandemic, and increased funding for food stamps.
The Health and Economic Recovery Omnibus Emergency Solutions Act, or Heroes Act, was proposed legislation acting as a $3 trillion stimulus package in response to the COVID-19 pandemic, intended to supplement the earlier CARES Act stimulus package. The bill for this Act of Congress was proposed by Representative Nita Lowey, a Democrat from New York, on May 12, 2020, and was passed by the United States House of Representatives by a vote of 208–199 on May 15, 2020.
The Richard L. TrumkaProtecting the Right to Organize Act, or PRO Act, is a proposed United States law that would amend previous labor laws such as the National Labor Relations Act for the purpose of expanding "various labor protections related to employees' rights to organize and collectively bargain in the workplace.” The measure would prevent employers from holding mandatory meetings for the purpose of counteracting labor organization and would strengthen the legal right of employees to join a labor union. The bill would also permit labor unions to encourage secondary strikes. The PRO Act would weaken "right-to-work" laws, which exist in 27 U.S. states. It would allow the National Labor Relations Board to fine employers for violations of labor law, and would provide compensation to employees involved in such cases. It is named after Richard Trumka, who was elected president of the AFL-CIO on September 16, 2009, and served in that office until his death in August 5, 2021.
The Pregnant Workers Fairness Act is a United States law meant to eliminate discrimination and ensure workplace accommodations for workers with known limitations related to pregnancy, childbirth, or a related medical condition. It applies to employers having fifteen or more employees. Originally a stand-alone bill first introduced in 2012, the bill was included as Division II of the Consolidated Appropriations Act, 2023, which was passed by Congress on December 27, 2022, and signed by President Joe Biden on December 29, 2022. The bill went into force on June 27, 2023.
The Creating a Respectful and Open World for Natural Hair Act of 2022 was a bill in the United States Congress intended to prohibit discrimination based on an individual's hair texture or hairstyle by classifying such discrimination illegal under federal law. It applied to federally assisted programs, housing programs, public accommodations, and employment. The act was introduced in the House of Representatives by Congresswoman Bonnie Watson Coleman (D-NJ) on March 19, 2021. Senator Cory Booker (D-NJ) introduced a companion bill in the Senate on March 22, 2021. The CROWN Act of 2022 marked the second time the legislation was introduced in Congress.
A class action waiver is a provision found in some contracts which prohibits a party from filing a class action legal proceeding against the other party, or both parties waiving the right to file class actions against each other. Though used internationally, class action waivers, just like class action lawsuits, are predominantly an American phenomenon and most frequently both found and upheld in the United States and agreements with American citizens.
