This bill prevents employers and other entities from using mandatory arbitration clauses to force workers and customers to resolve race discrimination claims in private arbitration rather than in court. The legislation applies to any dispute involving alleged discrimination or retaliation based on race, color, or national origin under federal, tribal, state, or local law, and it gives individuals the right to choose whether to pursue their case in court instead of arbitration. The bill modifies federal arbitration law to ensure that courts—not arbitrators—decide whether these mandatory arbitration agreements are valid and enforceable in discrimination cases. The law takes effect immediately for any disputes arising after the bill's enactment, with no specific appropriated funding mentioned. The bill addresses a common workplace and commercial practice where signed agreements require disputes to be settled through private arbitration, which typically limits an individual's legal remedies and public accountability compared to court proceedings.
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