Hey Compliance Warriors!
On February 10, 2022, the U.S. Senate passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA), barring the enforcement of most mandatory arbitration provisions in cases alleging sexual assault or sexual harassment. The bill has now gone to the desk of President Biden, who is expected to sign it into law. Once in effect, EFASASHA will apply to all pre-dispute arbitration clauses, including contracts executed before the enactment of this new law.
Today, I came across this very well-written explanation by the law firm Akin Gump.
- The EFASASHA will invalidate most contractual provisions requiring the arbitration of claims alleging sexual assault or sexual harassment.
- The law will also invalidate pre-dispute joint-action waivers that relate to sexual assault or sexual harassment disputes.
- Employers will need to review their mandatory arbitration agreements and joint-action waivers and re-think their approach to dispute resolution and to their anti-harassment initiatives more broadly.