S. 1979 would prohibit predispute arbitration agreements or joint-action waivers from being valid or enforceable if they require arbitration of an age discrimination dispute. Federal law prohibits employers from discriminating against people who are 40 years of age or older based on their age in any aspect of employment, including hiring, firing, promotion, compensation, job assignments, and training.

Such predispute arbitration agreements are generally included as a clause in employment contracts and require employees to resolve disputes through arbitration instead of pursuing resolution through litigation. The prohibition would apply to any dispute or claim that arises on or after the date of enactment.