President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act on March 3, 2022.
The Act amends the Federal Arbitration Act to state that, at the election of the person alleging conduct constituting a sexual harassment dispute or a sexual assault dispute, “no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to a case which is filed under Federal, Tribal, or State law and relates to the sexual assault dispute of the sexual harassment dispute.”
The Act, which was co-sponsored by both Democrats and Republicans and passed both the House of Representative and Senate on voice votes, applies to any dispute or claim that arises or accrues after March 3, 2022.
Employers who utilize arbitration agreements with their workforce should consult with counsel to determine whether those agreements should be revised in order to comply with the Act.