When parties to a contract agree to settle any claims that may arise between them through arbitration, the Federal Arbitration Act (the FAA) sets forth a national policy favoring arbitration. As a matter of public policy, however, New York has sought—through the 2018 enactment of §7515 of the New York Civil Practice Law and Rules—to exempt certain types of claims from arbitration, including claims alleging discrimination under the New York State Human Rights Law. Through §7515, New York seeks to provide those who claim to have been victimized by sexual assault a public forum in which to air their grievances.

In Gilbert v. Indeed, No. 20-3826, 2021 WL 169111 (S.D.N.Y. Jan. 19, 2021), U.S. District Court Judge Lewis J. Liman for the Southern District of New York recently addressed whether §7515 could be applied to invalidate the parties’ prior agreement to arbitrate. Judge Liman found that §7515 is preempted by the FAA, and thus cannot be used to exempt from arbitration claims that otherwise would be arbitrable under the FAA. Because the parties’ agreement to arbitrate was otherwise enforceable, Judge Liman granted the defendants’ motion to compel arbitration.

‘Gilbert’

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