In a bipartisan vote, Congress passed a new law poised to end employers’ ability to require employees to arbitrate claims for sexual harassment or sexual assault through a pre-dispute arbitration agreement. This new law is the latest in an ongoing series of state and federal laws inspired by the #MeToo movement, and the most significant federal legislation involving the issue of arbitration in recent years.

On February 7, 2022, the House of Representatives passed “The Ending Force Arbitration of Sexual Assault and Sexual Harassment Act” by a 335-97 vote. The Senate passed the bill three days later without amendment. The legislation now heads to President Biden’s desk, who has already expressed support for the bill and is expected to sign it.

The bill, if signed by the President, will amend the Federal Arbitration Act (“FAA”)—which has previously precluded prior attempts by states to limit the scope of employment arbitration clauses—to explicitly carve out sexual assault and sexual harassment claims from being compelled into arbitration by employers. In particular, the bill would allow employees asserting claims of sexual assault or sexual harassment to bring such claims in court on an individual or class action basis regardless of whether the employee had signed a pre-dispute arbitration agreement that requires such claims to be only in arbitration on an individual basis. The new bill, however, does allow arbitration of sexual assault and sexual harassment claims if the...

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