Prohibition on mandatory arbitration clauses, class action waivers, representation waivers, and discretionary clauses

Section 402 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1102) is amended by adding at the end the following: (d) (1) No covered person may— (A) require participants or beneficiaries to agree to a predispute arbitration provision as a condition for participation in, or receipt of benefits under, a plan; (B) agree to a postdispute arbitration provision with a participant or beneficiary with respect to a plan or plan benefit unless the conditions of clauses (i) through (iv) of section 502(n)(1)(B) are satisfied with respect to such provision; or (C) agree to any other covered provision with respect to a plan or plan benefit under any circumstances under which such provision would not be valid and enforceable under subparagraphs (C) through (E) of section 502(n)(1). (2) In this subsection— (A) the term covered person means— (i) a plan; (ii) a plan sponsor; (iii) an employer; or (iv) a person engaged by a plan for purposes of administering or operating the plan; and (B) the terms covered provision, predispute arbitration provision and postdispute arbitration provision have the meanings given such terms in section 502(n)(2)..