Wednesday, July 16, 2008

House Moves to Ban Mandatory Pre-Dispute Arbitration Clauses in Employment

Capitoldome The BNA Daily Labor Report (subscription required) is reporting:

The House Commercial and Administrative Law Subcommittee decides by a voice vote July 15 to report the Arbitration Fairness Act bill favorably to the full House Judiciary Committee. The bill, H.R. 3010, would invalidate arbitration agreements in employment, consumer, and franchise contracts between parties of unequal bargaining power unless both parties voluntarily agree to use arbitration after a dispute arises.

It is unclear yet whether this bill has any legs, but if it does it would change the way arbitration clauses would work in the employment context.  It might also have an impact on cases like Pyett pending before the Supreme Court for next term.

PS

http://lawprofessors.typepad.com/laborprof_blog/2008/07/house-moves-to.html

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