Bill Would Ban Predispute Arbitration Agreements

On March 8, 2012 Rep. Robert Andrews (D-NJ) reintroduced a bill (H.R. 4181) that would effectively ban most employment-related predispute arbitration agreements. Specifically, this bill would stipulate that:

no predispute arbitration agreement shall be valid or enforceable if it requires arbitration of an employment dispute. The term “employment dispute” means a dispute between an employer and employee arising out of the relationship of employer and employee.

The bill would exempt collective bargaining agreements from the ban on arbitration agreements, although such an agreement would not be permitted to contain a provision “waiving the right of an employee 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 therefore.” Similar bills have been introduced over the years, but have failed to gain any traction. This most recent measure has been referred to the House Committee on the Judiciary, where it is expected to stay for the remainder of this legislative term.

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