Last week, the Senate passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (H.R. 4445) (the “Act”), which prohibits the enforcement of mandatory arbitration agreements in connection with sexual harassment and sexual assault claims. The measure had previously passed in the House on February 7th. Although President Biden has not yet signed the Act into law, he has voiced support for the Act, and therefore, his signature is expected any day.

The Act is a win for #MeToo advocates who have lobbied that mandatory arbitration agreements create a culture of secrecy regarding workplace harassment and have protected serial harassers from public scrutiny. The Act was passed approximately four years after the #MeToo movement gained momentum in the fall of 2017.

Employers who utilize employee arbitration agreements should take note of the following key points in the Act:

  • The Act only prohibits the enforcement of arbitration agreements for certain claims. Accordingly, employers do not need to nullify current arbitration agreements or refrain from providing arbitration agreements to new hires.
  • Arbitration agreements can still be enforced in connection with other employment-related claims, such as other forms of discrimination or harassment.
  • Arbitration of sexual harassment or sexual assault claims is permitted if the employee bringing the claim selects arbitration rather than court.
  • The Act will apply to any claim that accrues after the enactment of the law. Therefore, it will not affect any claims currently in arbitration.
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Photo of Megan E. Bennett Megan E. Bennett

Megan focuses her practice on the representation of management in all aspects of labor and employment law. She assists in providing day-to-day counseling to employers by researching and recommending best practices for companies on human resources issues such as terminations, compliance with employment…

Megan focuses her practice on the representation of management in all aspects of labor and employment law. She assists in providing day-to-day counseling to employers by researching and recommending best practices for companies on human resources issues such as terminations, compliance with employment laws, workplace investigations, and the preparation of policies and employment agreements. Megan aids in the defense of employers in discrimination, harassment, retaliation, and various other employment-related claims before judicial bodies and administrative agencies. Megan assists clients across several industries in preparing annual affirmative action plans and defending against OFCCP audits.

During law school, Megan had hands-on experience, including serving as a Judicial Extern to the Honorable Judge Christopher Boyko of the U.S. District Court for the Northern District of Ohio, a Law Clerk for the Cuyahoga County Prosecutor’s Office, and a Legal Intern for the U.S. Department of Education, Office for Civil Rights. In addition, Megan was a Frantz Ward Summer Associate.

Prior to law school, Megan taught Kindergarten and Pre-Kindergarten in New York City through Teach for America. Megan holds a Master’s degree in Early Childhood Education from Lehman College of the City University of New York. Megan also has a Bachelor’s degree in Political Science and Communications from the University of Dayton.