Arbitration Cannot Be Required for Sexual Assault and Sexual Harassment

Federal law (Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021) now prohibits, effective immediately, a requirement that sexual assault and sexual harassment claims must be arbitrated. The prohibition applies to those claims brought under federal or state law. However, neither sexual assault nor sexual harassment is defined under the new law, and instead those terms are defined as under the applicable state or federal law. Therefore, the definitions will vary.

In addition, the law prohibits any waiver of a right to bring claims of sexual assault or harassment through a class action. This law does not only apply to employment claims. Instead, this law applies to any mandatory arbitration agreement or mandatory waiver.

It is important that if you have any mandatory arbitration agreements or mandatory waivers that violate the new law that you immediately have those reviewed to determine if new agreements need to be re-signed. Furthermore, you will need to have your agreements amended going forward before you have a person sign an agreement that is now prohibited.

Spangler and de Stefano, PLLP represents businesses regarding employment issues.

The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.