Congress Approves Bill Banning Arbitration For Workplace Sex Abuse Claims

Workplace Sex Abuse Arbitration Ban Overview:

• Who: Congress has approved a bill that will ban employers from forcing sexual assault and harassment claims into arbitration.
• Why: Forced arbitration clauses with non-disclosure agreements effectively protect perpetrators and silence victims of workplace sexual assault and harassment
• Where: The bill has been sent to President Joe Biden to sign into law.

Last week, both chambers of Congress approved a bill that bans employers from forcing employees to address their sexual assault or sexual harassment claims in arbitration instead of giving them the option to file a lawsuit. It has been sent to President Joe Biden to sign into law.

The bill, called the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, was co-sponsored in 2017 by Democratic Senator Kirsten Gillibrand and Republican Senator Lindsey Graham.

The House of Representatives passed the bill on Feb. 7 with a large bipartisan vote, and the narrowly-divided Senate approved it Thursday with a voice vote.

If the bill is signed into law by President Biden, it will provide federal protection for employees and allow them to sue their employers for sexual assault and harassment claims. Arbitration agreements in employment contracts will be nullified.

Before the Senate vote, Gillibrand noted that forced arbitration clauses are “especially common in female-dominated industries.” The clauses frequently include a non-disclosure agreement that prohibits victims from talking about their workplace sex abuse allegations.

She said that this legislation would address “a broken system that protects perpetrators and corporations and end the days of silencing survivors.”

Gillibrand says that approximately 60 million Americans are subject to forced arbitration clauses and that the bill represents “one of the most significant workplace reforms in history.”

How Does the Workplace Sex Assault Arbitration Ban Affect Employees?

Instead of being forced to address sexual assault complaints through arbitration, the bill provides employees with a choice to address their sex abuse allegations: they can choose to file a lawsuit or pursue arbitration instead of being forced to address their complaints through arbitration.

The measure will apply retroactively and invalidate any existing forced arbitration clauses.

“No more arbitration in the basement about misconduct up top,” Graham said of the bill.

Graham noted that the measure is limited to allegations of sexual assault and harassment and would not apply to unrelated claims. He said the intent of the measure is to make it “easier to get justice without gaming the system.”

Former Fox News anchor Gretchen Carlson, who accused CEO Roger Ailes of sexual harassment, joined the effort to convince Congress to change the law. She discovered the forced arbitration clause in her contract, but she filed a lawsuit against Ailes personally, which resulted in a settlement.

After the bill’s passage, Carlson said at a press conference that the bill would help to curb sexual harassment in the workplace because the “bad actors will know that women’s voices will be heard when they speak up about what’s really happening at work.”

Do you think it is fair for businesses to force sexual assault and harassment claims into arbitration? Do you think this legislation will have a positive effect on workplace culture? Join the discussion in the comments below!

Read About More Class Action Lawsuits & Class Action Settlements:

• Boy Scouts Secure $800M from Insurer to Fund $2.7B Sex-Abuse Compensation Fund
• Boys Suffer High Degree of Unreported Sexual Violence, Study Finds
• Adults Who Were Sexually Abused in Childhood in California Seek Their Day in Court
• What is the Background Check Policy for Youth Organizations?