Consumer & Employee Dispute Resolution Fairness Act Passes Senate Judiciary Committee

SB 20-093 promotes transparency and protections for consumers & employees

Denver, CO – Today the Senate Judiciary advanced legislation to increase transparency for Colorado consumers and employees with the passage of SB-093. The bill now heads to the Senate floor. 

“The forced arbitration clauses that we are dealing with, partially, in this bill are everywhere, on virtually everything,” bill sponsor Senator Mike Foote said. “I can guarantee you that everyone in this room, as a matter of fact, has used product or service today that has a forced arbitration clause attached to it."

In the last 20 years, the number of workers in arbitration clauses has more than doubled. After Wells Fargo manipulated consumers with fake accounts, forced arbitration clauses prevented over 64,000 Coloradans from seeking justice in a class action suit. Millions of workers and consumers are forced into these clauses with little ability to defend themselves against corporations with endless resources.

"By 2024, it's estimated that more than 4 in every 5 workers will be forced to sign an arbitration agreement in their hiring process. It can be used to silence victims of sexual harassment in the workplace, and can impact students who take out private loans for their education," Senate Majority Leader Steve Fenberg said. "This issue touches all Coloradans, and we all deserve a fair process when we have a dispute."

The Consumer And Employee Dispute Resolution Fairness Act addresses the need for ethics, fairness and transparency in arbitration and other agreements so everyday consumers or employees can hold corporations responsible.

SB-093 would:

• Establish ethics and conflicts of interest standards for arbitrators similar to those followed by judges and others in the legal profession to prevent bias and discrimination

• Create basic public transparency requirements for arbitrators so consumers, employees and the public are able to identify bad behavior and prevent corporate concealment

• Addresses unenforceable terms that discourage people from bringing their claim forward, such as forcing out-of-state arbitration and waiving rights under other areas of law