The New York Times reports on a bill recently introduced by Senators Leahy (D. VT.) and Franken (D. MN) that limits the use of arbitration in a variety of types of contracts.
A similar bill was introduced by then-Senator Russ Feingold without success in 2009. As that bill was being considered and in response to an invitation by Senator Feingold, the National Academy of Arbitrators submitted comments on that bill.
It is important to note that, as with the prior bill, there is an exception in the Leahy-Franken bill that allows for arbitration of disputes pursuant to collective bargaining agreements:
“(2)Collective bargaining agreements
Nothing in this chapter shall apply to any arbitration provision in a contract between an employer and a labor organization or between labor organizations, except that no such arbitration provision shall have the effect of waiving the right of an employee to seek judicial enforcement of a right arising under a provision of the Constitution of the United States, a State constitution, or a Federal or State statute, or public policy arising therefrom.”