CCAGW Urges Opposition to H.R. 1423 | Council For Citizens Against Government Waste

CCAGW Urges Opposition to H.R. 1423

Letters to Officials

September 17, 2019

Member of Congress
U.S. House of Representatives
Washington, D.C. 20515

Dear Representative,

On behalf of the more than one million members and supporters of the Council for Citizens Against Government Waste (CCAGW), I urge you to reject H.R. 1423, the Forced Arbitration Injustice Repeal (FAIR) Act.

Since 1925, federal law has preserved arbitration as a way to resolve disputes among businesses, employees, and consumers. Pre-dispute arbitration clauses in contracts are a benefit to the economy as they result in fewer class-action lawsuits.

A U.S. Chamber Institute for Legal Reform May 2019 study found that employees did better under arbitration than in litigation. Employees won on average nearly twice the amount through arbitration ($520,000) than in court ($270,000); disputes through arbitration were resolved faster (569 days) than in litigation (665 days); and 79 percent of arbitration cases were filed by employees who made less than $100,000, demonstrating that employees at all salary levels used arbitration to resolve their disputes.

H.R. 1423, introduced by Rep. Hank Johnson (D-Ga.), would invalidate all mandatory pre-dispute arbitration agreements. Mandatory arbitration clauses are common in many contracts and generally compel customers or employees to argue their cases outside of the court system in a fair and organized manner.

Banning arbitration agreements would eliminate an objective and efficient legal remedy that provides benefits to employees, employers, and consumers. The only clear beneficiary of passing H.R. 1423 are plaintiffs’ trial lawyers who would directly benefit from the many class action lawsuits that would replace cost-effective arbitration. Rather than prohibiting arbitration, Congress should be considering ways to make it better.

I encourage you to reject the FAIR Act. All votes on H.R. 1423 will be among those considered in CCAGW’s 2019 Congressional Ratings.


Tom Schatz
President, CCAGW

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