H.R. 5350

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5350 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5350

To amend title 9 of the United States Code with respect to arbitration.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 15, 2025

Mr. Johnson of Georgia (for himself, Ms. Barragan, Ms. Bonamici, Ms. 
Brownley, Mr. Carson, Mr. Carter of Louisiana, Mr. Casar, Mr. Casten, 
Mr. Castro of Texas, Ms. Chu, Mr. Cleaver, Ms. Dean of Pennsylvania, 
Ms. DelBene, Mr. Deluzio, Mr. DeSaulnier, Mr. Doggett, Mrs. Fletcher, 
Mr. Foster, Ms. Lois Frankel of Florida, Mr. Garcia of California, Ms. 
Garcia of Texas, Mr. Garcia of Illinois, Mr. Golden of Maine, Mr. 
Gottheimer, Mr. Huffman, Ms. Jayapal, Ms. Kelly of Illinois, Mr. 
Khanna, Ms. Lee of Pennsylvania, Mr. Lieu, Mr. Magaziner, Ms. 
McClellan, Ms. McCollum, Mr. McGarvey, Mr. Morelle, Mr. Mrvan, Mr. 
Neguse, Ms. Norton, Ms. Ocasio-Cortez, Ms. Omar, Mr. Peters, Ms. 
Pingree, Mr. Pocan, Ms. Pressley, Mr. Quigley, Ms. Ross, Ms. Scanlon, 
Mr. Sherman, Ms. Simon, Mr. Smith of Washington, Mr. Stanton, Mr. 
Swalwell, Mr. Thanedar, Ms. Tlaib, Mr. Tonko, Mr. Tran, and Ms. 
Williams of Georgia) introduced the following bill; which was referred 
to the Committee on the Judiciary

_______________________________________________________________________

A BILL

To amend title 9 of the United States Code with respect to arbitration.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Forced Arbitration Injustice Repeal 
Act of 2025'' or the ``FAIR Act of 2025''.

SEC. 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.

SEC. 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:

``CHAPTER 5--ARBITRATION OF EMPLOYMENT, CONSUMER, ANTITRUST, AND CIVIL 
RIGHTS DISPUTES

``Sec.
``501. Definitions.
``502. No validity or enforceability.
``Sec. 501. Definitions
``In this chapter--
``(1) the term `antitrust dispute' means a 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' means a dispute--
``(A) arising from an alleged violation of--
``(i) the Constitution of the United States 
or the constitution of a State; or
``(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) of the 
Internal Revenue Code of 1986, including parts 
of such law not explicitly referenced in such 
section but that relate to protecting 
individuals on any such basis; and
``(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' means a dispute between--
``(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' means 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 payment for, 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, and including 
a dispute arising under any law referred to or described in 
section 62(e) of the Internal Revenue Code of 1986, including 
parts of such law not explicitly referenced in such section but 
that relate to protecting individuals on any such basis, and 
including a dispute in which an individual or individuals seek 
certification as a class under rule 23 of the Federal Rules of 
Civil Procedure or as a collective action under section 16(b) 
of the Fair Labor Standards Act, or a comparable rule or 
provision of State law;
``(5) the term `predispute arbitration agreement' means an 
agreement to arbitrate a dispute that has not yet arisen at the 
time of the making of the agreement; and
``(6) the term `predispute joint-action waiver' means 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. 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,'' and all 
that follows through ``interstate commerce'' and 
inserting in its place ``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'' and 
inserting ``chapter 4 or 5'';
(C) in section 208 by striking ``chapter 4'' and 
inserting ``chapter 4 or 5''; and
(D) in section 307 by striking ``chapter 4'' and 
inserting ``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 501''.
Civil Rights Disputes.

SEC. 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.

SEC. 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.
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