After passing the House with an overwhelming majority, a bill that would ban forced arbitration for sexual misconduct claims in the workplace was passed by the Senate on February 10, 2022. President Biden is expected to sign the bill, thereby enacting a powerful update the way to federal employment and labor laws can help address unfairness in sexual misconduct matters.
Arbitration clauses are often buried deep in employment contracts, and many employees don’t know what they’re agreeing too or don’t fully understand what arbitration means. These clauses force employees with claims against their employer to bring them to arbitration—a private process which is often fully funded by the employer itself, and the binding decision is made by an outside arbitrator. Most of the time, employers win these arbitrations and survivors are barred from speaking publicly about their experiences. While some states, like New York and California, already have laws banning forced arbitration in sexual harassment or misconduct cases, this law will apply federally, meaning no one claiming sex harassment can be denied a chance to bring their claims publicly in court.
The bill bans forced arbitration, but that does not preclude survivors or harassment or assault from pursuing that path if they do not want to end up in court. The legislation will also apply to sex harassment claims that are brought in a joint or class action manner and is applicable to claims that arise after and before the enactment of the bill. According to a spokesperson for Representative Cheri Bustos (D-Ill.), “The bill would apply to any new claims, regardless of when the bad behavior occurred and barring any state or local law that might limit when a claim is brought."
