FAIR Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Forced Arbitration Injustice Repeal Act of 2025 (FAIR Act) aims to end the practice of requiring individuals and businesses to resolve disputes through arbitration instead of court. Specifically, it prohibits predispute arbitration agreements in employment, consumer, antitrust, and civil rights cases, as well as agreements that prevent participation in class action lawsuits. The bill amends the U.S. Code to define key terms related to these disputes and invalidate existing arbitration agreements in these areas.
Key provisions
- Prohibits predispute arbitration agreements for employment, consumer, antitrust, and civil rights disputes.
- Prohibits predispute joint-action waivers that prevent participation in class action lawsuits.
- Defines key terms such as ‘antitrust dispute,’ ‘civil rights dispute,’ ‘consumer dispute,’ and ‘employment dispute’.
- Invalidates existing predispute arbitration agreements and waivers.
- Requires court determination of applicability of the law to arbitration agreements, rather than arbitrators.
- Exempts collective bargaining agreements from the arbitration prohibition (with exceptions).
- Makes technical amendments to Title 9 of the U.S. Code to align with the new provisions.
- Sets an effective date for the law and its amendments.
Who is affected
- Employees
- Consumers
- Businesses (particularly those involved in consumer transactions and employment)
Bill text
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