Mar 7, 2022, 4:07 PM
(From Venable LLP) On Thursday, March 3, 2022, President Biden signed into law the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021" (the Act), an amendment to the Federal Arbitration Act, which currently requires enforcement of arbitration agreements and class/collective action waivers by creating an important carveout for sexual assault and sexual harassment disputes. The Act is a significant departure for employers that heavily rely on mandatory pre-dispute arbitration agreements and/or class/collective action waivers. Employers in states where such agreements are still permitted will need to revamp their approach to employment-related disputes and make necessary revisions to comply with the Act, according to members of Venable's Labor and Employment group.
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