FAIR Act of 2023

To amend title 9 of the United States Code with respect to arbitration. 1. Short title This Act may be cited as the Forced Arbitration Injustice Repeal Act of 2023 FAIR Act of 2023 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. 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: 5 Arbitration of Employment, Consumer, Antitrust, and Civil Rights Disputes Sec. 501. Definitions. 502. No validity or enforceability. 501. Definitions In this chapter— (1) the term antitrust 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 (A) arising from an alleged violation of— (i) the Constitution of the United States or the constitution of a State; (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) (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 (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 section 62(e) (5) the term predispute arbitration agreement (6) the term predispute joint-action waiver 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, interstate commerce 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 chapter 4 or 5 (C) in section 208 by striking chapter 4 chapter 4 or 5 (D) in section 307 by striking chapter 4 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 Civil Rights Disputes 501 . 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. 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.

Summary: Forced Arbitration Injustice Repeal Act of 2023 or the FAIR Act of 2023 This bill prohibits a predispute arbitration agreement from being valid or enforceable if it requires arbitration of an employment, consumer, antitrust, or civil rights dispute.