President Biden Signs Law Weakening Pre-Dispute Arbitration Agreements by Allowing Employees to Opt Out of Arbitration of Claims Relating to Sexual Assault and Harassment
MSK Client AlertÂ
March 14, 2022
On March 3, President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“EFA SASHA”) which amends the Federal Arbitration Act (“FAA”) to effectively ban employers from enforcing pre-dispute agreements that require employees to arbitrate sexual assault or harassment claims. Effective immediately, the law allows employees alleging sexual assault or harassment to elect, at their option, to invalidate any arbitration provision or joint/class action waiver with respect to such claims.