On August 12, 2024, the Second Circuit held that a plaintiff's hostile work environment claims were subject to the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 ("EFAA"), even though the plaintiff's claims arose before the EFAA's enactment.

The Court found that pursuant to the continuing violation doctrine, a hostile work environment claim accrues each time a plaintiff continues to experience sexual harassment.

Case Background

Congress passed the Federal Arbitration Act ("FAA") so that courts would treat arbitration agreements "on equal footing with all other contracts and enforce them according to their terms."

Generally, the FAA requires that arbitration agreements be "valid, irrevocable, and enforceable." President Joe Biden signed the EFAA into law on March 3, 2022. Under the EFAA, an employee can choose to render their employer’s arbitration agreement unenforceable if they commence a lawsuit under federal or state law "alleging conduct constituting a sexual harassment dispute or sexual assault dispute." The EFAA applies to any dispute or claim that arises or accrues on or after March 3, 2022 (the "EFAA's Effective Date").

Case Procedure

In Olivieri v. Stifel, Nicolaus & Co., Inc., the plaintiff alleged that her manager repeatedly sexually assaulted and sexually harassed her. The plaintiff sued her employer before the EFFA's enactment, asserting claims under the New York State Human Rights Law ("NYSHRL") for gender...

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