House votes to end forced arbitration in business disputes

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The House approved a bill today to end forced arbitration clauses that prevent workers and consumers from filing lawsuits in disputes with companies over employment practices, billing or civil rights.

Supporters, mostly Democrats, said the bill would restore access to justice for millions of Americans who are now locked out of the court system and forced to settle disputes against companies in a private arbitration system that often favors the company over the individual.

Opponents, mostly Republicans, said the measure would make it harder for individual workers or consumers by forcing them into lengthy, expensive court fights that may end up shutting them out of the justice system entirely.

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The House approved the bill, 225-186, on Friday. It now goes to the Senate, where it likely faces a tough road to passage.

The Forced Arbitration Injustice Repeal Act, or FAIR, defends the rights of workers and consumers and makes it easier for individuals to fight powerful corporations, says Rep. Hank Johnson, D-Ga., the legislation’s chief sponsor.

“Forced arbitration agreements undermine our indelible Constitutional right to trial by jury, benefiting powerful businesses at the expense of American consumers and workers,” he said.

A fellow Georgian, Republican Rep. Doug Collins, said that rather than end injustice, Johnson’s bill would promote it.

“What happens when everyday consumers and employees are denied rights to arbitrate – rights their (employment or consumer) contracts guarantee them?” Collins asked.

Read the full story from the Associated Press.  

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