No More Forced Arbitration of Sexual Harassment or Sexual Assault Claims

Effective March 3, 2022, employers can no longer require employees to arbitrate claims of sexual harassment or sexual assault.

 On March 3, 2022, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the “Act”), which amends the Federal Arbitration Act and allows employees to pursue sexual harassment and sexual assault claims in court – even if the employees are subject to mandatory arbitration agreements.  The Act applies to claims that “arise or accrue” as of March 3, 2022.  Employees can still agree to arbitrate these claims, but they can’t be forced to do so.

 Sexual harassment remains prevalent in the workplace.  According to the U.S. Equal Employment Opportunity Commission (“EEOC”), the federal agency that interprets and enforces the provisions of Title VII of the Civil Rights Act of 1964, 6,587 sexual harassment charges in the private sector were filed with the EEOC in Fiscal Year 2020.

 Does your organization require employees to sign a mandatory arbitration agreement?  If so, it’s time to review that agreement to ensure it complies with the new law. 

 It’s also a good time for all employers to review their harassment policies and remind employees of expected workplace behavior.  

 Laura Garofalo Law can help.