Nicholas J. Pappas Pros and Cons of Arbitration After Recent FAA Amendments
In this edition of his Employment Law column, Nicholas J. Pappas reviews the pros and cons of arbitration agreements and programs in light of Congress's recent amendment of the FAA to make mandatory pre-dispute agreements to arbitrate sexual harassment and sexual assault disputes unenforceable.
April 05, 2022 at 12:00 PM
11 minute read
On Feb. 10, 2022, Congress passed H.R. 4445, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the Act). The Act became effective immediately on March 3, 2022 when President Biden signed it into law. The Act amends the Federal Arbitration Act, 9 U.S.C. §1, et seq. (FAA), to empower persons alleging conduct constituting a "sexual harassment dispute" or a "sexual assault dispute" to make an "election" invalidating a pre-dispute agreement to arbitrate "with respect to a case" that "relates to" the dispute. The Act further empowers complainants to invalidate "pre-dispute joint action waivers" with respect to such "cases". Thus, any pre-dispute waiver of the right to file a class or collective action in court will no longer preclude the filing of a case relating to sexual harassment or sexual assault.
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