New Bill Would Prohibit Arbitration Agreements Covering Sexual Harassment, Gender Discrimination
In reaction to the “Silence Breakers,” a bipartisan group of lawmakers recently introduced legislation that would prohibit employers from including sexual harassment or gender discrimination claims in their arbitration agreements.
March 21, 2018 at 02:58 PM
3 minute read
In reaction to the “Silence Breakers,” a bipartisan group of lawmakers recently introduced legislation that would prohibit employers from including sexual harassment or gender discrimination claims in their arbitration agreements. Advocates say the bill, known as the Ending Forced Arbitration of Sexual Harassment Act, would allow victims of these types of acts to bring a cause of action in court and publicly address the situation.
It is estimated that more than half of all American workers are subject to mandatory arbitration clauses. Through such agreements, both sides agree to resolve a dispute out of court with the assistance of an independent arbitrator rather than by going to court. Companies consider it an effective and more streamlined dispute-resolution system that saves money.
In sponsoring the bill, Sen. Kirsten Gillibrand, D-New York, says arbitration in situations involving sex harassment and discrimination results in a “secret meeting” where the affected parties “try to work out some kind of deal that really only protects the predator.” Rep. Cheri Bustos, D-Illinois, said the bill would “help root out bad actors by preventing them from sweeping this problem under the rug.”
One company in particular is in the spotlight as proponent's push for the bill. Earlier this year, news broke that thousands of former employees of Sterling Jewelers, the Akron-based parent company of Kay Jewelers and Jared the Galleria of Jewelry, claimed to have been subjected to sexual harassment and discrimination during their time working for the jewelry giant. The class-action arbitration case was first started in 2008 and since Sterling requires all workers to waive their right to bring any employment-related disputes against their employer in court, the company had successfully kept the claims out of the public eye. Those pushing for the bill consider Sterling to be an example of how binding arbitration and sexual harassment claims just don't go together.
Given the surge of sexual harassment claims in recent months, it is not surprising that such a bill is taking center stage. Today, more and more people are feeling emboldened to stand up and raise sexual harassment claims. Those pushing for the bill hope it will help keep that momentum going. While there is nothing employers must do at this point to change their arbitration clauses, employers should be diligent in ensuring their workplace is and remains harassment-free. Sexual harassment and gender discrimination is very real, very relevant, and could be very costly.
Lindsay M. Rinehart is an associate, and Robert G. Brody is the founding and principal attorney at Brody and Associates, which has offices in Westport, Connecticut, and New York City.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllWho Owns a Social Media Marketing Account? It's Pretty Simple, Really
Consumer Arbitration Clause Concerns: How Can We Ensure a Fair Process?
5 minute readTrending Stories
- 1Trump Taps McKinsey CLO Pierre Gentin for Commerce Department GC
- 2Critical Mass With Law.com's Amanda Bronstad: 700+ Residents Near Ohio Derailment File New Suit, Is the FAA to Blame For Last Month's Air Disasters?
- 3Law Journal Column on Marital Residence Sales in Pending Divorces Puts 'Misplaced' Reliance on Two Cases
- 4A Message to the Community: Meeting the Moment in 2025
- 5Ex-Prosecutor Denies on Witness Stand That She Tried to Protect Ahmaud Arbery's Killers
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250