On February 10, 2022, after 4 years of deliberation, the U.S. Senate passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. President Biden is expected to sign it soon. Once in effect, the Act will ban forced arbitration in cases involving sexual misconduct and, instead, allow victims to arbitrate voluntarily or bring suit in federal, tribal, or state court. The Act will effectively void any forced arbitration clauses currently in employment contracts, while prohibiting them from being written into new contracts in the future.
Proponents of the Act believe it will bring accountability for wrongdoing, as forced arbitration clauses limit victims’ legal options. Arbitration is generally very costly and does not allow for appeals. Accordingly, by allowing victims to sue in court, the Act seeks to level the playing field between employees and employers. For questions or additional information, please contact Matthew Bernstein, Esq. mbernstein@florida-law.com