Seyfarth Synopsis: For more than twelve years, there have been efforts in Congress to limit the scope of mandatory employment arbitration agreements to exclude sexual harassment and sexual assault claims. Following the “Me Too” movement, there was a renewed push in Congress, as well as legislation in several states, to limit the scope of covered claims in employment arbitration agreements. Now, on February 10, 2022, Congress passed significant new legislation amending the Federal Arbitration Act: The “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021,” which precludes employers from mandating that employees arbitrate sexual harassment or sexual assault claims. President Biden is expected to sign the bill into law. As a result, this is a good opportunity for employers with arbitration programs—or those considering implementing such programs—to review their programs both to ensure compliance and to confirm that the programs continue to advance their business and strategic goals.
As we previously reported (here and here), in recent years a bipartisan group in Congress has taken a hard look at arbitration agreements that require employees to arbitrate claims for sexual harassment or assault.
On February 10, 2022, the Senate passed H.R. 4445, known as the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021.” The House of Representatives already passed H.R. 4445 on February 7, so the legislation now proceeds to President...
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https://www.jdsupra.com/legalnews/congress-amends-the-federal-arbitration-719...