Feds Finally Draw Line on Mandatory Arbitration Panels Madness
Published Date: 8/4/2026
Rule
Summary
The Federal Mediation and Conciliation Service (FMCS) is issuing an interim final rule with requests for comments to amend its arbitration services regulations. The interim final rule clarifies the circumstances in which the Office of Arbitration (OA) may decline to issue an arbitration panel, make a direct appointment, or provide related arbitration services. The rule would remove language that could be read to require FMCS to honor every unilateral request for an arbitration panel, regardless of legal constraints or FMCS's authority. FMCS seeks public comment on this interim final rule.
Analyzed Economic Effects
4 provisions identified: 1 benefits, 2 costs, 1 mixed.
FMCS may screen and decline panels
Starting August 4, 2026, the FMCS Office of Arbitration (OA) can do a limited check to see whether issuing an arbitration panel, making a direct appointment, or providing related services would conflict with applicable law, a court order, or FMCS authority. OA may ask the parties for the agreement, statute, regulation, court order, written authorization, or other information, and then may issue the panel, decline the request, hold it in abeyance, or take another administratively appropriate action.
Limits on unilateral nonstandard requests
FMCS will refer a randomly selected panel of seven arbitrators upon request, but requests for panels with other than seven names, direct appointments, or special qualifications will only be honored if both parties jointly submit or authorize them. A panel request may otherwise be joint or unilateral unless part 1404, applicable law, or the parties' agreement requires joint authorization.
Additional panels allowed with authority and fees
If parties do not agree on an arbitrator from the first panel, OA will furnish up to five additional panels upon joint request, or upon unilateral request only if authorized by the applicable collective-bargaining agreement, statute, regulation, court order, or other binding authority, and upon payment of additional fees. The additional-panel process is also subject to OA's threshold screening under Sec. 1404.9 and 1404.10.
No new fees or major small-entity impact
FMCS says this rule does not change the fee schedule in appendix A to part 1404, does not add recurring reporting or recordkeeping, and will not have a significant economic impact on a substantial number of small entities. FMCS expects any economic effect on small entities to be minimal.
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Key Dates
Department and Agencies
Related Federal Register Documents
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The Federal Mediation and Conciliation Service (FMCS) is asking for your thoughts on a new Service Request Form that helps businesses, nonprofits, and local governments ask for their services more easily. They want to make sure the form is clear, useful, and not a hassle to fill out. You’ve got until August 21, 2026, to share your feedback—no cost involved, just your voice!
2026-09783, Service Request Form
The Federal Mediation and Conciliation Service (FMCS) is asking for your thoughts on a new Service Request Form that helps them handle service requests faster and smarter. This affects federal, state, local governments, nonprofits, and private businesses who might use FMCS services. You’ve got until July 14, 2026, to share your feedback—filling out the form takes just 5 minutes and happens daily, so it’s quick and easy!
2025-17921, Notification of Intention To Strike or Picket at Any Health Care Institution
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2025-13927, Request for Arbitration Panel
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