Vote Smart's Synopsis:

Vote to pass a bill that prohibits a predispute arbitration agreement from being valid or enforceable if it requires arbitration of an employment, consumer, antitrust, or civil rights dispute.

Highlights:

• Defines “predispute arbitration agreement” as an agreement to arbitrate a dispute that has not yet arisen at the time of the making of the agreement (Sec. 3).

• Defines “antitrust dispute” as a dispute (Sec. 3):

• Arising from an alleged violation of the antitrust laws or State antitrust laws; and

• 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.

• Defines “civil rights dispute” as a dispute (Sec. 3):

• Arising from an alleged violation of the Constitution of the United States or the constitution of a state, or any Federal, State, or local law that prohibits discrimination; and

• In which at least one party alleging a violation described in the previous sub-highlight is one or more individuals, 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.

• Defines “consumer dispute” as a dispute between (Sec. 3):

• One or more individuals who seek or acquire real or personal property, services, 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 23 of the Federal Rules of Civil Procedure or a comparable rule or provision of State law; and

• The seller or provider of such property, services, securities or other investments, money, or credit, or 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.

• Defines “employment dispute” as 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 paymentfor, 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 (Sec. 3).

• Defines “predispute joint-action waiver” as 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. 3).

• Repeals the validity and enforceability of any predispute arbitration agreement or predispute joint-action waiver in regards to an employment dispute, consumer dispute, antitrust dispute, or civil rights dispute (Sec. 3).

• Specifies that the applicability of this Act to an agreement to arbitrate, and the validity and enforceability of an agreement to which this Act applies, will be determined by a court and not an arbitrator (Sec. 3).

• Establishes that this act will take effect upon enactment and will only apply to disputes or claims that arise or accrue on or after enactment (Sec. 4).

Full Bill Text

Full Bill Text