S 987 ISCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

1st SessionCommentsClose CommentsPermalink

S. 987CommentsClose CommentsPermalink

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

IN THE SENATE OF THE UNITED STATESCommentsClose CommentsPermalink

May 12, 2011CommentsClose CommentsPermalink

Mr. FRANKEN (for himself, Mr. BLUMENTHAL, Mr. LEAHY, Mr. DURBIN, Mr. WHITEHOUSE, Mr. BROWN of Ohio, Mr. HARKIN, Mr. KERRY, Mr. MERKLEY, Mr. UDALL of New Mexico, Mr. WYDEN, Mr. CASEY, and Mrs. BOXER) introduced the following bill; which was read twice and referred to the Committee on the JudiciaryCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

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

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

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘Arbitration Fairness Act of 2011’.CommentsClose CommentsPermalink

SEC. 2. FINDINGS.

The Congress finds the following:CommentsClose CommentsPermalink





(1) The Federal Arbitration Act (now enacted as chapter 1 of title 9 of the United States Code) was intended to apply to disputes between commercial entities of generally similar sophistication and bargaining power.CommentsClose CommentsPermalink





(2) A series of decisions by the Supreme Court of the United States have changed the meaning of the Act so that it now extends to consumer disputes and employment disputes.CommentsClose CommentsPermalink





(3) Most consumers and employees have little or no meaningful choice whether to submit their claims to arbitration. Often, consumers and employees are not even aware that they have given up their rights.CommentsClose CommentsPermalink





(4) Mandatory arbitration undermines the development of public law because there is inadequate transparency and inadequate judicial review of arbitrators’ decisions.CommentsClose CommentsPermalink





(5) Arbitration can be an acceptable alternative when consent to the arbitration is truly voluntary, and occurs after the dispute arises.CommentsClose CommentsPermalink

SEC. 3. ARBITRATION OF EMPLOYMENT, CONSUMER, AND CIVIL RIGHTS DISPUTES.

(a) In General- Title 9 of the United States Code is amended by adding at the end the following:CommentsClose CommentsPermalink

‘CHAPTER 4--ARBITRATION OF EMPLOYMENT, CONSUMER, AND CIVIL RIGHTS DISPUTES

‘Sec.CommentsClose CommentsPermalink





‘401. Definitions.CommentsClose CommentsPermalink





‘402. Validity and enforceability.CommentsClose CommentsPermalink

‘Sec. 401. Definitions

‘In this chapter--CommentsClose CommentsPermalink





‘(1) the term ‘civil rights dispute’ means a dispute--CommentsClose CommentsPermalink





‘(A) arising under--CommentsClose CommentsPermalink





‘(i) the Constitution of the United States or the constitution of a State; orCommentsClose CommentsPermalink





‘(ii) a Federal or State statute that prohibits discrimination on the basis of race, sex, disability, religion, national origin, or any invidious basis in education, employment, credit, housing, public accommodations and facilities, voting, or program funded or conducted by the Federal Government or State government, including any statute enforced by the Civil Rights Division of the Department of Justice and any statute enumerated in section 62(e) of the Internal Revenue Code of 1986 (relating to unlawful discrimination); andCommentsClose CommentsPermalink





‘(B) in which at least 1 party alleging a violation of the Constitution of the United States, a State constitution, or a statute prohibiting discrimination is an individual;CommentsClose CommentsPermalink





‘(2) the term ‘consumer dispute’ means a dispute between an individual who seeks or acquires real or personal property, services (including services relating to securities and other investments), money, or credit for personal, family, or household purposes and the seller or provider of such property, services, money, or credit;CommentsClose CommentsPermalink





‘(3) the term ‘employment dispute’ means a dispute between an employer and employee arising out of the relationship of employer and employee as defined in section 3 of the Fair Labor Standards Act of 1938 (29 U.S.C. 203); andCommentsClose CommentsPermalink





‘(4) the term ‘predispute arbitration agreement’ means any agreement to arbitrate a dispute that had not yet arisen at the time of the making of the agreement.CommentsClose CommentsPermalink

‘Sec. 402. Validity and enforceability

‘(a) In General- Notwithstanding any other provision of this title, no predispute arbitration agreement shall be valid or enforceable if it requires arbitration of an employment dispute, consumer dispute, or civil rights dispute.CommentsClose CommentsPermalink





‘(b) Applicability-CommentsClose CommentsPermalink





‘(1) IN GENERAL- An issue as to whether this chapter applies to an arbitration agreement 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.CommentsClose CommentsPermalink





‘(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 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 therefrom.’.CommentsClose CommentsPermalink





(b) Technical and Conforming Amendments-CommentsClose CommentsPermalink





(1) IN GENERAL- Title 9 of the United States Code is amended--CommentsClose CommentsPermalink





(A) in section 1, by striking ‘of seamen,’ and all that follows through ‘interstate commerce’;CommentsClose CommentsPermalink





(B) in section 2, by inserting ‘or as otherwise provided in chapter 4’ before the period at the end;CommentsClose CommentsPermalink





(C) in section 208--CommentsClose CommentsPermalink





(i) in the section heading, by striking ‘Chapter 1; residual application’ and inserting ‘Application’; andCommentsClose CommentsPermalink





(ii) by adding at the end the following: ‘This chapter applies to the extent that this chapter is not in conflict with chapter 4.’; andCommentsClose CommentsPermalink





(D) in section 307--CommentsClose CommentsPermalink





(i) in the section heading, by striking ‘Chapter 1; residual application’ and inserting ‘Application’; andCommentsClose CommentsPermalink





(ii) by adding at the end the following: ‘This chapter applies to the extent that this chapter is not in conflict with chapter 4.’.CommentsClose CommentsPermalink





(2) TABLE OF SECTIONS-CommentsClose CommentsPermalink





(A) CHAPTER 2- The table of sections for chapter 2 of title 9, United States Code, is amended by striking the item relating to section 208 and inserting the following:CommentsClose CommentsPermalink





‘208. Application.’.CommentsClose CommentsPermalink





(B) CHAPTER 3- The table of sections for chapter 3 of title 9, United States Code, is amended by striking the item relating to section 307 and inserting the following:CommentsClose CommentsPermalink





‘307. Application.’.CommentsClose CommentsPermalink





(3) TABLE OF CHAPTERS- The table of chapters for title 9, United States Code, is amended by adding at the end the following:CommentsClose CommentsPermalink

401’.CommentsClose CommentsPermalink

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 on or after such date.CommentsClose CommentsPermalink