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J. J. Keller protects people and the businesses they run. You can trust our expertise across a wide range of subjects relating to labor, transportation, environmental, and worker safety. Our deep knowledge of federal and state agencies is built on a strong foundation of more than 100 editors and consultants and 70+ years of regulatory compliance experience.

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J. J. Keller protects people and the businesses they run. You can trust our expertise across a wide range of subjects relating to labor, transportation, environmental, and worker safety. Our deep knowledge of federal and state agencies is built on a strong foundation of more than 100 editors and consultants and 70+ years of regulatory compliance experience.

Bill bans mandatory arbitration for sexual harassment claims

March 7, 2022

A bill banning pre-dispute employment arbitration agreements for sexual harassment and sexual assault claims was approved by the U.S. House of Representatives on February 7.

The Senate passed the measure on February 10, and President Joe Biden signed the bill into law on March 3.

While the bipartisan legislation bans pre-dispute agreements to arbitrate, employees can opt for arbitration after a claim arises. It’s up to the individual with the claim.

The bill applies to any new claims, regardless of when the behavior in question occurred.

The bill says that any arbitration agreement signed before a claim or dispute involving sexual assault or sexual harassment arises is voidable if the individual with the claim wants to make it void. In other words, if an employer requires an employee to sign an arbitration agreement and someone later sexually assaults/harasses that employee, that employee can arbitrate their claims if they want. Or they can sue in court under state or federal law. It’s entirely up to the employee.

The law also applies to sexual harassment and sexual assault claims brought in a joint, class, or collective action.

Those who supported the legislation said it gives survivors the choice to speak publicly about their experiences and about how to pursue their claims.

Employers should note that some states, including California and New York, already ban mandatory arbitration of sexual harassment claims, and some large companies have stopped enforcing such arbitration agreements.


Publish Date

March 7, 2022

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Industry News

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Related Topics

Sexual Harassment

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