New Law Will Prohibit Required Arbitration of Sexual Harassment Claims

In February 2022, Congress passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021. The law amends the Federal Arbitration Act (FAA) to prohibit mandatory pre-dispute arbitration of employee sexual harassment claims that would make required arbitration of assault and harassment claims invalid and unenforceable, The National Law Review reports.

The law also prohibits agreements that would waive the right of the employee to participate in a joint, class, or collective action in court, arbitration, or any other forum that relates to a sexual assault or sexual harassment dispute.

Under the law, an employee and employer can agree to arbitrate disputes, provided the agreement occurs after the dispute and with the employee’s written agreement. President Biden is expected to sign the Act into law.

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