[1][2] In the 2018 decision Epic Systems Corp. v. Lewis, the Supreme Court ruled that the FAA is not overridden by the protection of concerted activity established by the National Labor Relations Act of 1935, effectively making individual arbitration agreements in contracts wholly enforceable.
[5] State laws that govern the procedures of arbitration, but do not affect its enforcement, are outside the Act's preemptive scope.
Not all state laws regarding arbitration are preempted, for example: However, a Financial Industry Regulatory Authority (FINRA) Office of Hearing Officers (OHO) decision in a disciplinary action against Charles Schwab & Co. questions the ability of a regulator to enforce arbitration agreement restrictions such as NASD Rule 12204 (FINRA Rule 2268).
Specifically, the OHO Panel cited the Supreme Court decision in Shearson/American Express Inc. v. McMahon that securities law claims are no exception to the FAA's mandate that parties to an otherwise valid arbitration agreement submit the claim to arbitration.
[9] The OHO Panel also applied the Supreme Court decision in AT&T Mobility v. Concepcion where the Court established that class actions also are not an exception to the FAA, stating that a party to an arbitration agreement has no right to participate in a class action instead of an arbitration on an individual basis and that an exception to the FAA's mandate requires clear expression of Congressional intent.
The bill was introduced following events at several large tech firms, including Google, that led to the companies eliminating forced arbitration from their employee contracts.
The FAIR Act was reintroduced in the 117th Congress, where it once again passed in the House with Rep. Gaetz as the sole Republican supporter, but once again died in committee in the Senate.