S. 5605
Bans forced arbitration clauses in benefit plans
Says plans covered by the Employee Retirement Income Security Act cannot require arbitration or make participants give up the right to bring group claims.
- Arbitration clauses required before a dispute arises would be unenforceable
- Arbitration clauses forced on a participant after a dispute would also be unenforceable
- Clauses giving up class actions or representation would be unenforceable
- These clauses could not appear in plan documents or agreements with participants
In committee