Sec. 303. Prohibition on mandatory arbitration and protection of concerted legal action

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A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Section 8(a) of the National Labor Relations Act ( 29 U.S.C. 158(a) ) is amended— in paragraph (5), by striking the period at the end and inserting ; and ; and by adding at the end the following: to enter into or attempt to enforce any agreement, express or implied, whereby prior to a dispute to which the agreement applies, a worker (for purposes of this paragraph, as defined in section 401 of title 9, United States Code) undertakes or promises not to pursue, bring, join, litigate, or support any kind of joint, class, or collective claim arising from or relating to the employment of, or provision of services by, such worker in any forum that, but for such agreement, is of competent jurisdiction; to coerce such worker into undertaking or promising not to pursue, bring, join, litigate, or support any kind of joint, class, or collective claim arising from or relating to the employment of, or provision of services by, such worker; or to retaliate or threaten to retaliate against a worker for refusing to undertake or promise not to pursue, bring, join, litigate, or support any kind of joint, class, or collective claim arising from or relating to the employment of, or provision or services by, such worker:

Provided , That any agreement that violates this paragraph or results from a violation of this paragraph shall be to such extent unenforceable and void: Provided further , That this paragraph shall not apply to any agreement embodied in or expressly permitted by a contract between an employer and a labor organization. . Section 10(b) of the National Labor Relations Act ( 29 U.S.C. 160(b) ) is amended by striking discharge and inserting discharge, or unless the person aggrieved thereby is a worker alleging a violation of section 8(a)(6) whose charge involves a postdispute arbitration agreement that meets the requirements under section 402(a)(2) of title 9, United States Code, in which event the six-month period shall be computed from the day the waiting period described in subparagraph

(C)of such section ends . Title 9 of the United States Code is amended by adding at the end the following: Sec. 401. Definitions. 402. Validity and enforceability. In this chapter— the terms commerce , employee , and employer have the meanings given the terms in section 3 of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 203 ); the term covered entity means— an employer; or an individual or entity that is not acting as an employer and engages the services of a worker; the term predispute arbitration agreement means any agreement to arbitrate a dispute that had not yet arisen at the time of the making of the agreement; the term postdispute arbitration agreement means any agreement to arbitrate a dispute that arose before the time of the making of the agreement; the term worker means— an employee; or an individual who is engaged by a covered entity to perform services or work as an independent contractor (regardless of the label or classification assigned or used by the covered entity); and the term work dispute — means a dispute between one or more workers (or their authorized representatives) and a covered entity arising out of or related to the work relationship or prospective work relationship between the workers and the covered entity; and includes, but is not limited to— a dispute regarding the terms of, payment for, advertising of, recruitment of, referring of, arranging for, or discipline or discharge in connection with such work; a dispute arising under any law referred to or described in section 62(e) of the Internal Revenue Code of 1986, including any part of such a law not explicitly referenced in such section that relates to protecting individuals on a basis that is protected under a law referred to or described in such section; and a dispute in which an individual or individuals seek certification— as a class under rule 23 of the Federal Rules of Civil Procedure; as a collective action under section 16(b) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 216(b) ); or under a comparable rule or provision of State law. Notwithstanding any other chapter of this title— no predispute arbitration agreement shall be valid or enforceable if it requires arbitration of a work dispute; no postdispute arbitration agreement that requires arbitration of a work dispute shall be valid or enforceable unless— the agreement was not required by the covered entity, obtained by coercion or threat of adverse action, or made a condition of employment, work, or any employment-related or work-related privilege or benefit; each worker entering into the agreement was informed in writing using sufficiently plain language likely to be understood by the average worker of— the right of the worker under paragraph

(3)to refuse to enter the agreement without retaliation; and the protections under section 8(a)(6) of the National Labor Relations Act ( 29 U.S.C. 158(a)(6) ); each worker entering into the agreement entered the agreement after a waiting period of not fewer than 45 days, beginning on the date on which the employee was provided both the final text of the agreement and the disclosures required under subparagraph (B); and each worker entering into the agreement affirmatively consented to the agreement in writing; and no covered entity may retaliate or threaten to retaliate against a worker for refusing to enter into an agreement that provides for arbitration of a work dispute. During the waiting period described in subsection (a)(2)(C), the statute of limitations for any claims that arise from or form the basis for the applicable work dispute shall be tolled. Any person who is injured by reason of a violation of subsection (a)(3) may bring a civil action in the appropriate district court of the United States against the covered entity within 2 years of the violation, or within 3 years if such violation is willful. Relief granted in such an action shall include a reasonable attorney’s fee, other reasonable costs associated with maintaining the action, and any appropriate relief authorized by section 706(g) of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e–5(g) ) or by section 1977A(b) of the Revised Statutes ( 42 U.S.C. 1981a(b) ). This chapter applies to covered entities and workers engaged in activity affecting commerce to the fullest extent permitted by the Constitution of the United States, including the work of persons engaged in domestic service in households, as described in section 2(a) of the Fair Labor Standards Act of 1938 ( 29 U.S.C. 202(a) ). An issue as to whether this chapter applies to an arbitration agreement shall be determined under Federal law. The applicability of this chapter to an agreement to arbitrate and the validity and enforceability of an agreement to which this chapter applies shall be determined by a court, rather than an arbitrator, regardless of whether any contractual provision purports to delegate such determinations to the arbitrator and irrespective of whether the party resisting arbitration challenges the arbitration agreement specifically or in conjunction with other terms of the contract containing such agreement. Nothing in this chapter shall apply to any arbitration provision in a contract between a covered entity and a labor organization, except that no such arbitration provision shall have the effect of waiving the right of a worker to seek judicial enforcement of a right arising under a provision of the Constitution of the United States, the constitution of a State, or a Federal or State statute, or public policy arising therefrom. . Title 9 of the United States Code is amended— in section 1, by striking of seamen, and all that follows through interstate commerce ; in section 2, by inserting or as otherwise provided in chapter 4 before the period at the end; in section 208— in the section heading, by striking and inserting Chapter 1; residual application ; and Application by adding at the end the following: This chapter applies to the extent that this chapter is not in conflict with chapter 4. ; and in section 307— in the section heading, by striking and inserting Chapter 1; residual application ; and Application by adding at the end the following: This chapter applies to the extent that this chapter is not in conflict with chapter 4. . The table of sections for chapter 2 of title 9, United States Code, is amended by striking the item relating to section 208 and inserting the following: 208. Application. . The table of sections for chapter 3 of title 9, United States Code, is amended by striking the item relating to section 307 and inserting the following: 307. Application. . The table of chapters for title 9, United States Code, is amended by adding at the end the following: 4. Arbitration of work disputes 401. . This section, and the amendments made by this section, shall take effect on the date of enactment of this Act and shall apply with respect to any dispute or claim that arises or accrues on or after such date, including any dispute or claim to which an agreement predating such date applies.

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