This spring ushered in a new chapter for employment arbitration law. On March 3, 2022, after years of political wrangling, President Biden signed into law the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the Act). The Act adds a new Chapter 4 to the Federal Arbitration Act (FAA).
Chapter 4 empowers a person “alleging conduct constituting a sexual harassment dispute or sexual assault dispute” to make an “election” invalidating a pre-dispute agreement to arbitrate “with respect to a case which … relates to the sexual assault dispute or the sexual harassment dispute.” 9 U.S.C. §402(a). The Act further empowers “the named representative of a class or in a collective action alleging such conduct” to invalidate pre-dispute waivers of class and collective actions “with respect to” such a case. 9 U.S.C. §402(a).
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