Congress Passes New Law Ending Forced Arbitration For Sexual Harassment And Assault Claims

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Congress Passes New Law Ending Forced Arbitration For Sexual Harassment And Assault Claims
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Here's a breakdown of the legislation and what it means for employees:

Third, the applicability of H.R. 4445 to a given case is to be decided under federal law and by a federal judge, not an arbitrator.

Fifth, H.R. 4445 isn’t just limited to the employment context. In addition to employees, other people potentially affected by this law include clients, customers, patients and consumers. This is because many consumer services, like property leases, ridesharing apps, home improvement contracts and so on, often require the consumer to sign a contract forcing them to arbitrate any legal claims concerning sexual harassment or assault ....

Now that companies know it’s far more likely allegations of sexual misconduct could result in a public lawsuit, they will try harder to prevent it from happening in the first place. It’s true that arbitration isn’t always confidential. However, it’s usually easier for a company-defendant to keep what goes on during arbitration private compared to a conventional civil suit in state or federal court.

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