Changes Coming to Workplace Arbitrations?

Last week, the United States Senate passed legislation that, if ultimately signed into law, would radically overhaul the landscape of workplace arbitrations.

Known as the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, this bill was previously passed by the House (335-97) and passed the Senate on a voice vote. It now heads to President Biden’s desk and he’s indicated he will sign the bill into law.

A by-product of the #MeToo movement, the legislation ends the use of forced arbitration clauses for sexual harassment and assault claims. According to lawmakers, more than 60 million Americans are subjected to these provisions in employment contracts. Once signed into law, the legislation would void any forced arbitration clauses in current contracts pertaining to sexual assault or sexual harassment, allowing victims to take their cases to court. Companies will be prohibited from writing those clauses into contracts in the future.

Any case previously settled through forced arbitration, however, will remain closed.

To read more, click here. To hear former Fox News anchor Gretchen Carlson discuss this legislation, click here.