The FAIR Act of 2025 would eliminate forced arbitration agreements in four major areas: employment disputes, consumer disputes, antitrust cases, and civil rights violations. Right now, many companies require workers and customers to sign agreements saying that if a problem arises, they must settle it through private arbitration instead of going to court. This bill would make those pre-dispute agreements unenforceable and unvalid.

The bill also protects people's right to join together in lawsuits. Currently, many arbitration clauses include "class action waivers" that prevent individuals from banding together to sue as a group. The FAIR Act would prohibit these waivers, meaning workers could pursue collective wage theft claims together, consumers could file class action lawsuits against companies, and people facing discrimination could join forces in court rather than being forced into separate private arbitrations.

The law would apply to disputes involving employment (including independent contractors), consumer purchases and services, antitrust violations, and discrimination based on protected characteristics like race, sex, age, disability, or religion. Courts—not arbitrators—would decide whether the law applies to a specific case. The bill does include an exception for collective bargaining agreements between employers and unions, though even those agreements couldn't prevent workers from suing in court over constitutional rights or statutory protections. The law would take effect immediately upon passage and apply to any disputes that arise after that date.