No More Forced Arbitration: New Bill Gives Workers the Right to Sue Over Race Discrimination Claims

The new “Ending Forced Arbitration of Race Discrimination Act of 2025” is a major shakeup to how certain civil rights disputes get handled. Simply put, this bill amends Title 9 of the U.S. Code to make sure that if you face alleged race, color, or national origin discrimination, your employer can’t force you into a private, predispute arbitration hearing. You get to choose whether to go to arbitration or take the case to court.

This isn't just a technical change; it’s about restoring access to the public court system for some of the most sensitive workplace issues. The bill specifically targets “predispute arbitration agreements” and “predispute joint-action waivers”—those clauses you often sign on day one that waive your right to sue or join a class action lawsuit later on. Under this proposed law, those clauses become unenforceable if the dispute involves race discrimination, defined broadly to cover Federal, Tribal, State, or local law.

The Fine Print: Who Decides Where the Case Goes?

One of the most important provisions is Section 2, which states that the individual alleging the discrimination has the “election” to void the arbitration agreement. Even if your contract says all disputes must go to arbitration, this bill gives you the power to override that clause and file a lawsuit in court instead. This is a huge shift, as mandatory arbitration often keeps these disputes out of the public eye and away from juries.

Crucially, the bill clarifies that if there is any question about whether this new rule applies—for example, if an employer argues the claim isn't really about race discrimination—a court, not an arbitrator, must decide the matter. This prevents the very entities that benefit from arbitration from deciding if the case should be heard there in the first place. For busy people, this means less time arguing about the venue and more clarity on your legal options.

Real-World Impact: What This Means for Your Job

Think about the standard employment contract you signed. If you work at a large corporation, chances are high that buried in the onboarding paperwork is a mandatory arbitration clause. If you later felt you were passed over for a promotion due to your national origin, that clause currently dictates you must resolve the issue privately, often behind closed doors with limited discovery and appeal options.

If this bill becomes law, that changes. You could bypass that clause entirely and file a claim in court. This potentially opens the door for greater transparency and accountability for employers. For employers, especially those who rely heavily on these agreements to manage legal risk and volume, this means they will need to prepare for potentially increased litigation and public scrutiny in race-related cases. The law applies to any dispute that arises or accrues on or after the date of enactment, meaning it only affects future claims, not those already in progress.

Why This Matters for Class Actions

Beyond individual claims, this bill also makes “predispute joint-action waivers” unenforceable in these specific disputes. This is critical because it restores the ability for groups of employees to band together in class or collective actions over systemic race discrimination. Without the ability to waive these clauses, employers can no longer proactively block large groups of workers from challenging policies they believe are discriminatory. This provision empowers workers to pool resources and challenge widespread issues, rather than fighting expensive legal battles one person at a time.