The bill protects the right of people alleging race discrimination to pursue public court remedies and clarifies enforceability of arbitration clauses, but it raises litigation costs and court workload that could be borne by businesses, consumers, and the judicial system.
People alleging race discrimination (particularly racial and ethnic minorities) keep the right to sue in public courts rather than being forced into predispute arbitration, preserving access to jury trials, discovery, and broader remedies.
Clarifying Title IX to exclude race-discrimination claims from predispute arbitration reduces legal uncertainty for litigants and employers about the enforceability of arbitration clauses.
Employers and businesses—especially small businesses—face higher litigation costs and greater risk of class or collective lawsuits, which could raise operating expenses and be passed on to customers or result in reduced employee benefits.
Removing predispute arbitration for these claims eliminates confidentiality and some procedural efficiencies of arbitration, likely increasing case durations and overall court caseloads and straining judicial resources.
Based on analysis of 3 sections of legislative text.
Makes predispute arbitration agreements unenforceable for disputes involving race discrimination and updates Title 9 cross-references.
Prohibits enforcement of predispute arbitration agreements when the dispute involves race discrimination by adding a new chapter to the Federal Arbitration Act. The change prevents parties from being forced into arbitration for race-discrimination claims that arise on or after the law's effective date and updates cross-references in Title 9 accordingly. Applies only to disputes or claims that arise or accrue on or after the date of enactment; agreements and claims that arose before enactment are not covered.
Introduced November 20, 2025 by Wesley Bell · Last progress November 20, 2025