Senate Committee Advances Bill That Would Ban Mandatory Arbitration Of Age Discrimination Claims

May 14, 2024

What's New

A bill that would invalidate mandatory arbitration of employment-related age discrimination claims was cleared May 9, 2024, by the Senate Judiciary Committee for consideration by the full Senate. The Protecting Older Americans Act (S. 1979) would apply to any dispute that arises on or after its enactment, so it would allow employees who signed arbitration agreements before that date to opt out of them for any age discrimination claims that arise after the statute’s enactment. H.R. 4120, a companion bill to S. 1979, is pending in the House Judiciary Committee.

What It Means

For years, opponents of mandatory arbitration have been chipping away at its use despite numerous Supreme Court rulings holding that mandatory arbitration is a viable legal alternative to protracted court litigation. S. 1979 builds on the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, enacted in 2022, which invalidates mandatory arbitration clauses for sexual assault and sexual harassment claims. The fact that the committee vote approving S. 1979 was bipartisan substantially increases the odds of that bill becoming law. 

What You Should Do

Employers should be aware that mandatory arbitration for employment-related age discrimination disputes may be outlawed in the not-too-distant future. CWC will keep you updated on this issue.

RELATED CONTENT

Subscribe to CWC's Updates and Events

CLICK TO SIGN UP