Mandatory Arbitration of Sexual Harassment Claims Will Soon Be Forbidden

On February 10th the U.S. Senate unanimously passed the so called #MeToo bill, H.R. 4445. The bill prohibits mandatory arbitration of workplace sexual harassment and sexual assault claims. The bill will become law after it is signed by President Biden. After it is signed it will take effect immediately.

Under this (soon to be) law employers can no longer require employees to arbitrate sexual harassment or sexual assault claims. Mandatory arbitration of other claims will, however, still be allowed so long as your arbitration agreement/provision complies with all state law requirements for enforceability.

Employers that utilize mandatory arbitration should take this opportunity to review those contracts and revise them accordingly.

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