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Federal law bars mandatory arbitration, class waiver of sexual harassment/assault claims

The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the Act), H.R. 4445, was signed into law on March 3, 2022. The Act amends the Federal Arbitration Act (FAA) to give employees who are parties to arbitration agreements with their employers the option of bringing their claims of sexual assault or sexual harassment in either arbitration or court.

Key provisions. The new legislation adds a section to the FAA which provides,

[A]t the election of the person alleging conduct constituting a sexual harassment dispute or a sexual assault dispute, or the named representative of a class or in a collective action alleging such conduct, 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 or the sexual harassment dispute.

“Sexual assault dispute” is defined as “a dispute involving a nonconsensual sexual act or sexual contact.” “Sexual harassment dispute” is defined as “a dispute relating to conduct that is alleged to constitute sexual harassment under applicable Federal, Tribal, or State law.” The Act defines joint-action waiver as an agreement, whether or not part of an arbitration agreement, that would prohibit or waive the right of a party to the agreement to participate in a joint,...

Read Full Story: https://www.natlawreview.com/article/class-action-trends-report-traversing-ar...