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Monday, October 19, 2026

Congress Bars Forced Arbitration of Sexual Harassment Claims (US) - Employment Law Worldview

On February 7, 2022, the U.S. House of Representatives passed, and on February 10, the U.S. Senate approved, a bill (the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (Act)) that would amend the Federal Arbitration Act (FAA) so as to invalidate clauses in employment agreements requiring employees to arbitrate claims of sexual assault or sexual harassment. The bill is expected to be signed into law by President Biden.

The Act provides that a pre-dispute arbitration agreement or pre-dispute joint-action waiver may be invalidated at the election of a person alleging conduct constituting a sexual assault dispute or sexual harassment dispute. In other words, if an employee signs an agreement to arbitrate employment-related claims and later experiences conduct that he or she alleges constitutes either a sexual assault dispute or a sexual harassment dispute, the employee may unilaterally dispense with the arbitration provisions to which the employee agreed and pursue such claims in federal, state, or tribal court, as applicable. Likewise, if the employee agreed to pursue claims only on an individual basis, and not as a representative or member of a class action, the employee may dispense with that pre-dispute agreement at their election and pursue claims on a joint basis with other alleged victims. All issues regarding arbitrability of such claims are to be determined under federal law and must be determined by a court, not an arbitrator, even if the...



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