Who knew Congress was getting anything done? As I write this, the Senate is meeting on HR4455–a bill passed by the House that prohibits forced arbitration for sexual harassment or assault (you can watch here). The bill has broad bi-partisan support and President Biden wants to sign it:
This legislation would amend the Federal Arbitration Act for disputes involving sexual assault and sexual harassment in order to stop employers and businesses from forcing employees and customers out of the court system and into arbitration.
How does this impact your agreements? This bill voids current mandatory arbitration agreements for sexual harassment or assault claims at the choice of the employee, including joint or class actions. As a practical matter, the bill applies to any claim that arises on or after the law takes effect and will not impact pending arbitrations.
All is not lost: Your arbitration agreements are still enforceable for other employment claims, including sexual discrimination where there is no touching or harassment.
Questions? We are happy to help. We can update your agreements, policies and handbook efficiently. Reduce your to do list. Contact us.