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S5605119th CongressWALLET
Employee and Retiree Access to Justice Act
Sponsored By: Senator Smith, Tina [D-MN]
Introduced
Summary
Bans mandatory arbitration and steers ERISA disputes into courts. The Employee and Retiree Access to Justice Act would make predispute arbitration clauses for ERISA section 502 claims invalid and set strict conditions for any postdispute arbitration or limits on legal forums.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 0 costs, 1 mixed.
More courtroom review for benefits
If enacted, courts would review benefit decisions and plan language without giving special deference for most plans. The bill would make invalid any plan term that gives someone discretionary authority over benefit determinations or asks courts to apply a deferential standard. This would apply to plans other than multiemployer plans and could make it easier for participants and beneficiaries to challenge denied benefits in court.
Ban on forced arbitration before disputes
If enacted, the bill would make predispute arbitration clauses unenforceable for claims under ERISA section 502. Plans, employers, and other covered persons could not require arbitration as a condition of joining a plan or receiving benefits. Participants and beneficiaries would still be able to bring covered claims in court or another competent forum.
Court review and post dispute consent
If enacted, a court — not an arbitrator — would decide whether a plan-related arbitration agreement is valid. The bill would allow post-dispute arbitration only if the participant was not coerced, got a paper notice explaining the right to refuse, had at least 45 days to review the final terms and disclosures, and gave written consent. These steps would apply even when a contract purports to let an arbitrator decide enforceability.
Transition timing and claim rules
If enacted, the bill's rules would apply to disputes arising on or after enactment. A dispute would be treated as arising only when the plaintiff actually knows about the breach, using ERISA section 413's definition of actual knowledge. Plans and other covered persons would have until after the start of the first plan year that begins at least one year after enactment to update plan documents, so long as they act in accordance with the new rules during that interim.
Sponsors & CoSponsors
Sponsor
Smith, Tina [D-MN]
MN • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov