S. 5605 — Employee and Retiree Access to Justice Act

This section invalidates predispute arbitration provisions, class action waivers, representation waivers, and discretionary authority clauses in ERISA plans. It permits postdispute arbitration only if the agreement is voluntary, includes paper notice to participants, follows a 45-day waiting period, and receives affirmative written consent. Disputes over enforceability are decided by courts rather than arbitrators. The Secretary of Labor may issue implementing regulations.

This section prohibits covered persons from requiring participants or beneficiaries to agree to predispute arbitration provisions as a condition of plan participation or benefits. It bars postdispute arbitration agreements unless the conditions in ERISA section 502(n)(1)(B) are met and prohibits any other covered provision that would be invalid under section 502(n)(1)(C) through (E). Covered persons include plans, plan sponsors, employers, and plan administrators.

This section makes the amendments in sections 2 and 3 effective on the date of enactment and applicable to any dispute or claim arising or accruing on or after that date, regardless of whether plan documents have been updated. It delays enforcement for noncompliance with plan document updates until the first plan year beginning on or after the date that is one year after enactment, provided the amendments are followed during the interim.