Companies will not be able to require arbitration to settle claims of sexual harassment and sexual assault under a bill passed last week by both houses of Congress. The legislation voids forced arbitration agreements in any contract if a sexual assault or harassment claim is brought.
The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, which allows people to have their claims heard in court, is headed to President Biden’s desk, where he is expected to sign it into law.
The bill found widespread bipartisan support in both the Senate and the House. The impetus for the legislation was that most forced arbitration proceedings typically were held behind closed doors, and parties were held to non-disclosure agreements.
Rep. Cheri Bustos (D-IL) initially introduced the bill in the House in 2017 amid the rise of the #MeToo movement. Bustos said she began working on the legislation after reading in the Washington Post about thousands of workers who were facing forced arbitration proceedings. According to Bustos, the legislation that voids forced arbitration could affect more than 60 million Americans.
“Sexual harassment, quid-pro-quo arrangements for sexual favors, abuse and even rape within a company were all being hidden behind closed doors because of a simple legal technicality in the employment paperwork,” she stated.
Sens. Lindsay Graham (R-SC) and Kirsten Gillibrand (D-NY) introduced the legislation in the Senate to void these forced arbitration agreements.
“The days of sexual harassment and sexual assault cases being buried in unfair arbitration clauses are now over,” Graham stated in a press release Thursday.
“These types of agreements had the chilling effect of shielding misconduct from public scrutiny,” he added.
