On March 3, 2022, Congress passed H.R. 4445, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021. This law prohibits allows victims of sexual assault and sexual harassment to take their claims to court instead of being required to arbitrate through binding arbitration agreements. The law also invalidates class action waivers on claims involving sexual assault or sexual harassment claims.

This law will be particularly impactful in the employment sector, where employees frequently agree to binding arbitration clauses when they accept new employment. Often, employees are unaware of these clauses until they seek to bring a claim against their current or former employers in court. 

There are many reasons why employers may prefer arbitration: arbitration is generally a quicker and more cost-effective process for employers, and it is confidential. While survivors of sexual assault or sexual harassment may also choose to proceed with an arbitration process for similar reasons, this law ensures that victims have a choice regarding whether to pursue their claims in court. 

If you have questions about an arbitration agreement or an employment matter, please contact our firm.