It is not uncommon for employers to include an arbitration clause as part of their hiring contracts. The Federal Arbitration Act validates these arbitration agreements as generally irrevocable and enforceable. In many cases, this unfortunately means disputes between employers and employees are kept out of courtrooms and behind closed doors. There is now one notable exception: Disputes involving sexual assault or sexual harassment.

The 2021 Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA or EFAA) amends the Federal Arbitration Act and prevents employers from forcing arbitration in disputes involving sexual assault or sexual harassment. The EFAA ensures that victims of sexual assault are not forced into arbitrations which can be seen as less transparent and less effective when dealing with such sensitive issues.  It further empowers these victims to pursue their claims in a court of law, should they so choose. At the election of the claimant, only a court, not an arbitrator, can determine whether the EFAA applies to a dispute and whether any pre-dispute arbitration agreement is then valid and enforceable. The EFAA can prevent an arbitration from occurring even where there are other claims in the case that do not involve sexual harassment or sexual assault.

 The EFAA went into effect immediately upon signing on March 3, 2022, and applies to any claims that arose or accrued since that date. It does not apply retroactively to claims that existed prior to March 2022. It is a massive win for victims of workplace sexual harassment who were previously forced into arbitration situations which historically kept these issues away from the public eye.  

If you or a loved one have been a victim of workplace sexual assault or harassment, please consider seeking experienced legal advice. Contact our office today for a consultation—we are dedicated to fighting for your rights and seeking the justice you deserve. 

For a full transcription of the EFAA or more information, please visit Congress.gov.