President Signs Bill Banning Mandatory Arbitration for Certain Claims

Thursday, March 3, 2022

Susan Eisenberg spoke with SHRM about President Biden signing a bill into law that bans enforcement of pre-dispute arbitration pacts for sexual harassment and sexual assault claims. Susan explained that an employee will generally file a claim in court and the employer will move to enforce an arbitration agreement that the employee signed (typically at the start of employment). Under the new law, however, employers can no longer compel arbitration for sexual-harassment or sexual-assault claims. "There has been talk for a long time about limiting arbitration agreements, and this is the first step," she said.

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