Tag: sexual assault

Bill Ending Mandatory Arbitration of Sexual Assault and Harassment Claims President Biden has signed the widely anticipated bill, The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (H.R. 4445), into law. This new law which forbids mandatory arbitration in cases related to sexual harassment or assault was recently passed in a voice vote by the Senate after an overwhelming bipartisan approval by the House of Representatives. Now that the bill has been signed into law by the President, it will take effect immediately. The Effects of H.R. 4445 The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 amends the Federal Arbitration Act to add Chapter 4 and make slight adjustments to account for the new chapter. This new chapter invalidates existing forced arbitration clauses which are estimated to affect millions of Americans in cases involving allegations of sexual assault or harassment. Specifically, this new law permits any individual who alleges conduct that would constitute "a dispute relating to conduct that is alleged to constitute sexual harassment under applicable Federal, Tribal, or State law" to invalidate all pre-dispute agreements which would "prohibit, or waive the right of, one of the parties to the agreement to participate in a joint, class, or collective action in a judicial, arbitral, administrative, or another forum." The law permits any individual to choose to arbitrate a dispute privately if they wish, but the choice of whether or not to arbitrate rests solely with the accuser. Additionally, the law only applies to pre-dispute agreements, not to agreements to arbitrate that occur subsequent to the dispute. If any disputes do arise related to the content of Chapter 4 in regards to a case, the new law states that a court will decide whether or not it will apply to an agreement. Notably, the bill will not apply to disputes that arose or accrued prior to March 3rd, 2022. This is to say that the law will not cover incidents that would be considered sexual harassment or assault which occurred before this date. How Should Employers Respond? As of now, employers should ensure that they fully understand this new law and what it may mean for any employee arbitration agreements they may have in place. As of now, it is impossible to say how courts may choose to interpret the law; however, in order to ensure their policies and arbitration agreements are ready, compliant employers should consult with qualified employment counsel. Make sure your company policies are compliant with State law by reading up on fair chance hiring practices. Learn more by downloading our free resource on Adverse Action Notice Protocols in Compliance With FCRA. Source

Tag: sexual assault

Bill Ends Mandatory Arbitration of Sexual Assault and Harassment Claims

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