Good news for our legal rights


Dear AAJ Members,

The Centers for Medicare and Medicaid Services (CMS) has finalized a rule that will ban nursing homes and long term care facilities from requiring their residents to “agree to” pre-dispute arbitration as a condition for receiving federal money through Medicare and Medicaid. We expect the practical impact of this rule to be that the overwhelming majority of nursing homes will cease their practice of forcing residents to sign pre-dispute arbitration agreements.

This rule is a major breakthrough in our work with you, and so many of your clients, to end forced arbitration. Our work together against forced arbitration clauses buried in the fine print has been ongoing, building, and producing results. It includes:

Advocacy for the Consumer Financial Protection Bureau to issue a final rule to curb fraud and abuse in the financial sector by limiting the use of class action waivers as part of forced arbitration clauses;
Advocacy for the Department of Labor’s final rule (issued April 4, 2016) requiring that contracts between investors and a financial adviser/firm acting as a fiduciary are prohibited from including provisions that would limit liability or waive the investor’s right to participate in a class action in court;
Advocacy for the Department of Education to issue a final rule that prohibits the use of forced arbitration and class action waivers by schools receiving federal funds under Title IV of the Higher Education Act of 1965;
Advocacy for the Department of Labor’s final rule (issued August 24, 2016) implementing President Obama’s Fair Pay and Safe Workplaces Executive Order (July 2014) that prohibits corporations with federal contracts of $1 million or more from subjecting their employees to forced arbitration for claims arising under Title VII of the Civil Rights Act of 1964, or civil suits related to sexual assault or harassment.

Thank you for working with us to protect consumers from forced arbitration. We will share additional news with you as rules are finalized by other agencies.

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