• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

InFront on the Workforce

Long-term and post-acute care publication

Subscribe | Events | Advertise | Contact Us

  • Facebook
  • LinkedIn
  • Twitter

  • HOME
  • ABOUT
    • Who We Are & What We Do
    • The Vision
    • Readership
  • RESOURCES
    • Important Links
  • Retention & Engagement
  • Culture & Leadership
  • Regulatory
  • Technology
  • Industry Trends

FAIR Act Passes House with Strong Opinions on Both Sides

By Joanne Kaldy / September 24, 2019

This bill has passionate support and serious opposition. Does it stand a chance of becoming law?

On September 20, the U.S. House of Representatives passed the Forced Arbitration Injustice Repeal (FAIR) Act, which would eliminate the forced arbitration clauses in employment, consumer, and civil rights cases. It would enable consumers and workers to agree to arbitration after a dispute occurs. Rep. Hank Johnson (D-GA), who first introduced the bill, said, “The FAIR Act would level the playing field for Americans.”

In short, the FAIR Act is designed to:

  • Require that agreements to arbitrate employment, consumer, civil rights, and antitrust disputes be made after a dispute arises.
  • Provide court system access to men and women who are sexually harassed at work and reserve servicemembers who are fired for being deployed.
  • Give consumers a choice of arbitration, thus creating a market where arbitrators must compete for their business.

Expressing support for the bill, Jerrold Nadler (D-NY) said, “Forced arbitration is a secret, closed system that deprives Americans of their day in court and shields corporations from accountability and scrutiny for abusive conduct.”

In a statement opposing the bill, Rep. Tom McClintock (R-CA) said, “The net result of this bill will be higher prices for products and lower wages for workers as companies factor the high cost of litigation into their business models.” Employer groups such as the Society for Human Resource Management (SHRM) also oppose the bill. In a letter to House members, SHRM president Johnny C. Taylor, Jr., said, “SHRM believes employers must have the ability to enact policies and procedures that best meet the needs of their individual organizations.”

The bill’s opponents cite a recent study that found employee-plaintiffs in arbitration won three times more often than in litigation (32% versus 11%) and that they won twice as much money (average $520,000 versus $270,000). At the same time, a national survey suggested that there is some bipartisan support for improving arbitration (38% of Republicans, 22% of Independents, and 40% of Democrats).

While the FAIR Act passed the House with a 225 to 186 vote, it is highly unlikely to gain any traction in the Senate, even if it is allowed to come up for a vote there.

Related Posts

  • House Passes Paycheck Fairness Act: What’s Next?
  • Bridging Skills Gaps to Build a Strong Workforce
  • (12/11) Hiring Remains Strong as 2018 Nears End – SHRM
  • Keep the Heart of Your Company Beating Strong
  • Job Numbers Are Strong But Present Challenges for Healthcare

Categories: Regulatory / Tags: Featured

Primary Sidebar

AROUND THE WEB

Items of interest from across the web.

  • As More States Are Legalizing Marijuana, How Should Employers Respond – HR Executive
  • Giving Thanks for Senior Living Employees, Leaders — McKnights
  • 22 States Petition CMS to End Mandate As 76% of SNF Staff Behind on Vaccines – Skilled Nursing News
  • 6 Ways to Re-energize a Depleted Team – Harvard Business Review
  • 7 Ways to Lift Up the Employees’ Morale Ahead of Holiday Season — Entrepreneur
  • Workforce, Financial Relief Focus in ‘Tumultuous Period’ After Midterms: Argentum – McKnights
  • 6 Steps to Creating More Inclusive Job Descriptions – HR Morning
  • Mental Wellbeing and Resilience: Tech + Culture to the Rescue – HR Daily Advisor
  • Employers Have ‘Flexibility Fatigue.’ But That Could Put Them on the Wrong Side of the ADA. – HR Dive(11/16) Employers Must Push Preventive Care to Inflation-Worried Staff – TLNT

View All

CONTACT INFO

Publisher: CC Andrews
440.638.6990
Editor: Joanne Kaldy

PO Box 360727
Cleveland, OH 44136

CATEGORIES

  • CULTURE & LEADERSHIP
  • RETENTION & ENGAGEMENT
  • REGULATORY
  • TECHNOLOGY
  • TRENDS IN THE INDUSTRY

Copyright © 2023 - InFrontWorkforce.com. All rights reserved.