Sexual Harassment Claims, Individual and Classwide, Can No Longer Be Forced to Arbitration by Employers
February 10, 2022
The law amends the Federal Arbitration Act to ban agreements requiring arbitration where the agreement was signed before the alleged sexual harassment or sexual assault. In other words, an employee can sign an arbitration agreement consenting to arbitration after the illegal conduct has occurred.
Courts, and not arbitrators, will be charged with deciding whether the arbitration agreement or class action waiver should be enforced under the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021.” The act will apply to any claims that arise or accrue on or after the date of President Biden’s signature.
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