Lawmakers Advance FAIR Act Bill Aimed at Eliminating Forced Arbitration in Employment Contracts

Lawmakers Pass FAIR Act Bill Aimed at Eliminating Forced Arbitration in Employment Contracts

On Tuesday, September 10, 2019, House Democrats voted overwhelmingly to send the FAIR Act (a bill to end forced arbitration) to the House floor for a vote. The vote on the bill is expected to take place as early as next week. [Read more…]

Google Employees Push for Legislation to End Forced Arbitration in Employment Contracts

Google employees are organizing a phone drive that will take place on Wednesday, May 1st to press lawmakers into supporting The Forced Arbitration Injustice Repeal (“FAIR”) Act. The FAIR Act is an initiative recently reintroduced in the House of Representatives seeking to end the use of arbitration agreements in employment contracts so as to sidestep public trials. Widely used across many industries, these clauses are inserted into workers’ contracts more and more frequently to require that the workers waive their right to sue their employers in a real and public court. Instead, employee complaints are funneled into a private legal system, where employers (who fund the system) are viewed as having the upper hand in the settling of job-related disputes. [Read more…]

American Association for Justice Releases Video in Support of FAIR Act Aimed at Eliminating Forced Arbitration in Employment Contracts

American Association for Justice Releases Video in Support of FAIR Act

Early this year, democratic lawmakers announced a new bill aimed at ending the practice of forced arbitration in employment contracts. The Forced Arbitration Injustice Repeal (“FAIR”) Act seeks to end the use of mandatory arbitration clauses, which are often inserted into workers’ contracts to require that they waive their right to sue their employers in a real court. With their right to sue waived, employees complaints instead are directed to a private system funded by employers where employers are seen to gain the upper hand in job-related disputes. [Read more…]

Lawmakers Announce New ‘FAIR Act’ Bill to End Forced Arbitration

Lawmakers Announce New ‘Fair Act’ Bill to End Forced Arbitration

Democratic lawmakers today announced a new bill aimed at ending the practice of forced arbitration in employment contracts. The Forced Arbitration Injustice Repeal, or FAIR Act, seeks to end the use of mandatory arbitration clauses, which are often inserted into workers contracts to require that employees waive their right to sue their employers. With the right to sue waived, employee complaints instead can only go through a private system where employers are automatically given the upper hand in disputes. [Read more…]

Supreme Court Set to Review Mandatory Arbitration in the Employment Context

construction workers

Court will rule on cases involving workers’ rights to sue their employers in court

As reported by the Wall Street Journal the U.S. Supreme Court is slated to make rulings in three cases that involve workers’ rights to sue their employers. The fundamental question is whether employment contracts can allow employers to force workers to bargain away their rights to sue in court over employment disputes. [Read more…]

Consumers Overwhelmingly Want Access to Legal System Currently Denied by Major Banks

Bank Misconduct

A 2016 study by The Pew Charitable Trusts notes that consumer disputes with banks over fees and policies are on the rise. Of particular concern are mandatory arbitration clauses found in 90% of bank account agreements. These forced arbitration provisions steer consumers to third-party decision-makers whose decisions are usually binding, giving the consumer limited or no opportunity to appeal. Such provisions also prohibit consumer bank customers from seeking any remedy in an impartial court of law. [Read more…]

Judge Rakoff Calls Consumer “Consent” to Online Arbitration Agreements a Legal Fiction

Scales of Justice in courtroom

In a court ruling regarding alleged Uber price-fixing, U.S. District Judge Jed Rakoff states in no uncertain terms that when it comes to online arbitration agreements, consumer consent is nothing more than a “legal fiction.” [Read more…]

Forced Arbitration Steals Consumers’ Rights

Forced Arbitration Steals Consumers’ Rights

Lieff Cabraser partner Mark P. Chalos has written an article for The Tennessean discussing the mandatory arbitration clauses hidden in an astonishing number of financial service and product contracts that ultimately deprive consumers of their basic constitutional rights to justice when something goes wrong. Chalos’ “Forced Arbitration Steals Consumers’ Rights” piece also signals a call to action for consumers to voice their opinions to federal and state legislators now, during open review of the Consumer Financial Protection Bureau’s (CFPB) newly proposed rules. [Read more…]

New Rule from Consumer Financial Protection Bureau Would Restore Consumers’ Rights to Collective Action Against a Predatory Financial Industry

Banks Get Boot from Forced Arbitration

If the new Rule is approved, banks will no longer be able to use forced arbitration clauses to ban consumers from joining together in class action lawsuits, seen as most effective consumer option in fighting illegal practices

After an extensive new study that conclusively proved how unfair and destructive fine print “forced arbitration” clauses have been for consumers, the Consumer Financial Protection Bureau (“CFPB”) has issued a new rule forbidding banks from forcing consumers into non-trial unbalanced arbitration hearings as their only recourse when a bank has cheated them. If approved, this landmark rule will be a huge gain for consumers, who have been suffering from bank schemes and illegal manipulations without any real means to fight back. [Read more…]