S. 2799 — Forced Arbitration Injustice Repeal Act

This section states the purposes of the Act to (1) prohibit predispute arbitration agreements that force arbitration of future employment, consumer, antitrust, or civil rights disputes; and (2) 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 the Federal Arbitration Act (Title 9, U.S. Code) by adding a new chapter at the end that (1) defines employment disputes (i.e., work-related disputes involving individuals, including independent contractors and class or collective actions), consumer disputes (i.e., between individuals acquiring goods or services for personal use and sellers or providers, including class actions), antitrust disputes (i.e., alleged antitrust violations seeking class certification), and civil rights disputes (i.e., alleged constitutional or anti-discrimination violations by or on behalf of individuals, including class actions); and (2) declares predispute arbitration agreements and predispute joint-action waivers invalid and unenforceable for such disputes, with applicability determined by a court under federal law (notwithstanding other title provisions or arbitrator delegation). The section further amends section 1 of the act to exempt from the act all contracts of individuals regardless of employee or independent contractor designation (replacing prior exemptions limited to seamen, railroad employees, and certain other workers engaged in interstate commerce). (Thus, parties cannot compel arbitration or waive class, collective, or joint actions pre-dispute for these categories, except that collective bargaining agreements remain subject to the new chapter but cannot waive workers' statutory or constitutional rights enforceable in court.)

This section specifies that the Act and its amendments take effect on the date of enactment and apply to any dispute or claim that arises or accrues on or after such date.