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Arbitration Fairness Act

Since its inception in 1985, NELA has been a leader in opposing forced arbitration of employment claims and it is one of our top legislative priorities. Forced arbitration denies individuals access to our country's civil justice system when employers violate our nation's employment and civil rights laws.

Forced arbitration of workplace claims is anathema to our public justice system because it occurs in secret, private tribunals in the absence of accompanying legal safeguards, such as a written record of the arbitration proceedings, the right to appeal the arbitrator's decision if the law is not applied correctly, or other guarantees that ensure a fair process that exist in a court of law. The practice is widespread, affecting every segment of the workforce from minimum wage workers to our nation's servicemembers to highly compensated professionals who are compelled to give up their right to go to court when they believe they have been illegally treated in the workplace in order to get or keep a job.

In 2010, 27 percent of U.S. employers reported that they required forced arbitration of employment disputes—covering over 36 million employees, or one-third of the non-union workforce. This percentage is likely higher today and continues to grow in the wake of court rulings that have misinterpreted the Federal Arbitration Act (FAA), which was enacted in 1925 to regulate voluntary arbitration agreements between commercial parties with equal bargaining power. Workplace laws at risk include the:

  • Civil Rights Acts of 1964 and 1991;
  • Age Discrimination in Employment Act;
  • Americans with Disabilities Act Amendments Act;
  • Family and Medical Leave Act;
  • Fair Labor Standards Act;
  • Equal Pay Act;
  • Uniformed Services Employment and Reemployment Rights Act;
  • National Labor Relations Act; and
  • Lilly Ledbetter Fair Pay Act of 2009.

Arbitration is an appropriate way to resolve disputes when it is knowingly and voluntarily agreed to by the parties after a dispute arises. This includes the protection of workers' substantive legal rights, such as their right to join together using voluntary arbitration or the courts to challenge discriminatory employment practices, violations of wage and hour laws, or other unlawful actions by the employer.

Arbitration Fairness Act of 2015 Introduced

NELA Commends Senator Leahy for Introducing The Restoring Statutory Rights And Interests Of The States Act of 2016

NELA and The Employee Rights Advocacy Institute For Law & Policy Statement On CFPB Forced Arbitration Study

NELA Statement On Supreme Court Decision In American Express Co. v. Italian Colors Restaurant

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Arbitration Fairness Act Of 2015 And Restoring Statutory Rights And Interests Of The States Act Of 2016: Two Complementary Approaches To Ending Forced Arbitration In The Workplace

Recent U.S. Supreme Court rulings make clear that Congress must act to restore the original intent of the Federal Arbitration Act (FAA), which was enacted in 1925 for the purpose of ensuring that voluntary business-to-business arbitration agreements were enforced by the courts.

To restore fairness and access to the justice system, on April 29, 2015 Senator Al Franken (D-MN) and Representative Hank C. Johnson (D-GA) introduced the Arbitration Fairness Act of 2015 (S. 1133/H.R. 2087). On February 4, 2016 Senator Patrick J. Leahy introduced the Restoring Statutory Rights and Interests of the States Act (RSRA,S. 2506). Representative Hank C. Johnson introduced identical legislation in the House on April 12, 2016 (H.R. 4899).

These bills represent complementary approaches to amending the Federal Arbitration Act by making it unlawful for employers to impose arbitration on employees.

NELA Recommends USERRA Reforms To Ban Forced Arbitration of Servicemembers’ Employment Rights

Join NELA In Ending Forced Arbitration Of Workplace Disputes

As a leader of the Fair Arbitration Now Coalition, NELA is educating the public and policymakers on the need to ban forced arbitration. In fighting against forced arbitration, NELA and our members:

  • Lobby Congress for legislation that would prevent employers from forcing workers to give up their right to go to court—and accompanying legal protections—when they have workplace claims;
  • File amicus briefs in significant cases challenging forced arbitration; and
  • Serve as a resource for press exposés of forced arbitration practices.

To get involved in NELA's efforts to oppose forced arbitration, contact us at nelahq@nelahq.org.

Contact

Laura M. Flegel
Legislative & Public Policy Director
lflegel@nelahq.org
(202) 898-2880, ext. 115

Matt Koski
Program Director
mkoski@nelahq.org
(415) 296-7629, ext. 103

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