H.R. 5350 — FAIR Act of 2025

This section states the purposes of the Act: (1) to prohibit predispute arbitration agreements that force arbitration of future employment, consumer, antitrust, or civil rights disputes; and (2) to prohibit agreements and practices that interfere with the right of individuals, workers, and small businesses to participate in a joint, class, or collective action related to an employment, consumer, antitrust, or civil rights dispute.

This section amends Title 9 of the United States Code (Federal Arbitration Act) by adding a new chapter declaring predispute arbitration agreements and predispute joint-action waivers invalid and unenforceable with respect to (1) employment disputes (i.e., between workers or prospective workers, including independent contractors, and persons arising from work relationships); (2) consumer disputes (i.e., between individuals acquiring property, services, securities, money, or credit for personal, family, or household purposes and sellers, providers, or related third parties); (3) antitrust disputes (i.e., class action claims alleging violations of federal or state antitrust laws); and (4) civil rights disputes (i.e., claims by individuals alleging violations of federal, state, or local antidiscrimination laws or constitutions in areas including employment, housing, credit, education, and public accommodations). Applicability of the chapter is determined under federal law by a court, rather than an arbitrator; collective bargaining agreements are exempt except they may not waive workers' rights to judicial enforcement of constitutional, statutory, or public policy rights. The section also amends section 1 to expand the act's coverage to disputes "of individuals, regardless of whether such individuals are designated as employees or independent contractors for other purposes."

This section establishes the effective date of the Act and its amendments as the date of enactment, with applicability to any dispute or claim arising or accruing on or after such date.