31 Mar MANDATORY ARBITRATION BANNED FOR SEX ASSAULT AND HARASSMENT CASES
On March 3, 2022, President Biden signed the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021” into law. The Act amends the Federal Arbitration Act by banning mandatory arbitration in sexual assault and sexual harassment cases, as well as those claiming retaliation resulting from internal complaints of sexual assault or harassment. Effective immediately, any mandatory arbitration clauses pertaining to these types of cases are void and no longer enforceable for future cases. One notable caveat, however, is that the Act does not prohibit mandatory arbitration clauses pertaining specifically to sex discrimination claims that are unrelated to sexual assault or harassment.
In light of the new law, employers should review and, if necessary, revise any arbitration agreements included in its existing employment agreements. The attorneys of the Masud Labor Law Group can help with that. Our attorneys have always been on the cutting edge of legal issues pertaining to mandatory arbitration agreements. In fact, we have advised clients since the early 2000’s to make the switch away from mandatory arbitration of all cases to requiring disputes be resolved in local court. Should you have any questions regarding mandatory arbitration agreements or the implications of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, please feel free to contact the Masud Labor Law Group.