Senate Judiciary Committee Advances Anti-Arbitration Bill

The Senate Judiciary Committee advanced the “Protecting Older Americans Act” (S. 1979) by a 15-6 vote. The bipartisan bill would prohibit the use of pre-dispute arbitration in cases of workplace age discrimination. The bill is sponsored by Senators Kirsten Gillibrand (D-NY), Lindsey Graham (R-SC), and Dick Durbin (D-IL); and Representative Nancy Mace (R-SC) in the House.  

HRPA advocacy: In anticipation of the Committee’s consideration of the bill, HR Policy Association sent a letter in strong opposition to the Protecting Older Americans Act, citing that the bill would limit the application of the Federal Arbitration Act (FAA) and undermine the benefits of pre-dispute arbitration.  Furthermore, we noted in our letter that the Supreme Court held over three decades ago that claims under the Age Discrimination in Employment Act (ADEA) are fully compatible with agreements for individual arbitration. 

Outlook: The bill will now go to the full Senate chamber for further discussion and possible amendment before the next vote. While the bill is likely to pass the Democratic-majority Senate, it lacks the votes for passage in the Republican- majority House. Although the measure is unlikely to pass into law this year, the Association remains concerned about the trend of policymakers seeking to restrict or completely ban arbitration in employment settings. It is likely that these measures will be reintroduced in the next Congress.