Employers can't require arbitration of sexual harassment, assault lawsuits.
President Biden has signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act.
The legislation provides that employers cannot enforce "pre-dispute" arbitration agreements in cases alleging sexual harassment or sexual assault. However, employees may still voluntarily agree to arbitrate these claims after a dispute arises. It also provides that any decisions about arbitrability of these claims must be made by a court, not by an arbitrator.
The legislation passed the House and Senate in February, and the President was expected to sign. In fact, the President would like to see more employment-related exceptions to the broad policy favoring arbitration -- including race discrimination, wage and hour, and labor claims.
The legislation, which had bipartisan support, will apply to any sexual harassment or assault claim that accrues after the date that the legislation took effect (March 3).
More details on this legislation are available here.
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