President Approves Congress' Amendment to the Federal Arbitration Act Ending Forced Arbitration of Sexual Assault and Harrassment

Sexual Assault and Harassment

On March 3, 2022, President Biden signed H.R. 4445 into law. Named as the “Ending Force Arbitration of Sexual Assault and Sexual Harassment Act,” it changes the Federal Arbitration Act by removing the mandatory arbitration requirement for Sexual Assault and Harassment victims and giving the victims the discretion to settle their grievances through arbitration or litigate them in court. Furthermore, it makes an arbitration agreement unenforceable or voidable even when the agreement has been made before the act’s passage.

Encouraging companies themselves to be proactive and take charge in creating as safe workspace, the Act received extensive bipartisan support in Congress. It passed the House with a 335 to 97 vote and the Senate with a voice vote. The Act gives plaintiffs the ability to make the allegations publicly as it goes through the judicial process. This would, in turn, incentivize companies in taking these allegations seriously and take proactive steps in preventing such conduct as they will most likely result in public pressure. As seen with the #MeToo movement, the public’s perception and discussions resulting from sexual assault or harassment allegations made in news outlets and social media have brought about widespread changes not only in specific companies but also in various industries.

While the Act provides victims of sexual assault or harassment in the workplace a tool to seek remedies through a court, it does not allow claims that have already been settled to be reopened and relitigated. The Act implications, however, is not limited to the context of an employer-employee relationship. Any agreement made with a company that requires a party to submit allegations of sexual assault or harassment to an arbitrator can be voidable pursuant to the Act.