The U.S. House of Representatives on February 7, 2022, and the U.S. Senate on February 9, passed bills that would prohibit enforcement of contract provisions that mandate third party arbitration of workplace sexual harassment or assault claims. The measures are bipartisan, introduced by Democrats and Republicans. The law as passed narrowly pertains to sexual harassment and assault allegations, although separate legislation that has not passed would nullify all pre-dispute arbitration agreements. Proponents of this type legislation have argued that private arbitration allows offenders to escape public scrutiny and requires claimants to go to a private procedure buried in the fine print of employment policies. Employers argue that arbitration is quicker and cheaper than other forms of litigation, and that arbitrators do just as good a job as judges and juries in deciding harassment cases. The measures do not prohibit employers and plaintiffs from agreeing to arbitration after the dispute arises. The new law applies to any dispute or claim that arises or accrues on or after the date of enactment and nullifies pre-dispute arbitration agreements covering sexual assault or harassment. This legislation will be addressed further in the next newsletter.
This is part of our March 2022 Newsletter.
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