On March 3, 2022, the President signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021. A product of the Me Too Movement, the new law allows individuals bringing sexual assault and sexual harassment claims who entered into predispute arbitration agreements or class- or collective-action waivers to reject those agreements and waivers and bring those claims in court and via a class or collective action. The law applies to any claims arising after the date of enactment.
In addition, California law as it currently stands bans all mandatory predispute arbitration agreements in employment and Congress recently passed the Forced Arbitration Injustice Repeal Act of 2022 (FAIR Act), which would also ban mandatory predispute arbitration agreements if it becomes law.
Times are uncertain for employers who rely on arbitration.
Listen to the new episode of The Practical Employment Law Podcast for insights on these issues and more.
You can listen here.
KMK Law articles and blog posts are intended to bring attention to developments in the law and are not intended as legal advice for any particular client or any particular situation. The laws/regulations and interpretations thereof are evolving and subject to change. Although we will attempt to update articles/blog posts for material changes, the article/post may not reflect changes in laws/regulations or guidance issued after the date the article/post was published. Please consult with counsel of your choice regarding any specific questions you may have.
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