"Congress Ends Forced Arbitration of Sexual Harassment and Sexual Assault Claims"

Kellen Scott article on "Congress Ends Forced Arbitration of Sexual Harassment and Sexual Assault Claims"

In a recent Houston Business Journal article, Kellen Scott, shareholder in our Houston’s Labor & Employment and Commercial Litigation practices, discussed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 passed by the U.S. Congress in February. The bill, since signed into law by President Biden, invalidates pre-dispute arbitration clauses and restricts the enforceability of other agreements between businesses and individuals.

According to Scott, the Act amends the Federal Arbitration Act, to (i) prohibit enforcement of certain pre-dispute arbitration agreements, (ii) invalidate certain pre-dispute class or collective action waiver provisions, and (iii) nullify dispute resolution clauses that otherwise delegate certain issues to an arbitrator.

“To manage expectations, employers and businesses should be aware of this limitation on pre-dispute arbitration agreements that is likely to become law,” said Scott, prior to the President signing the bill into law. “Neither will be able to rely on pre-dispute arbitration agreements, pre-dispute class action waivers, or delegation provisions if they are sought to be enforced in cases involving allegations of sexual harassment or sexual assault.”

Here is a link with the article for subscribers - Digital Edition