Congress passes new limits on predispute employment agreements

In the wake of the #MeToo movement, Congress has enacted legislation to assist people who pursue individual and class-action lawsuits in their ability to litigate disputes of sexual assault and sexual harassment. After President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 into law, Congress passed the Speak Out Act. This was signed into law by President Biden on December 7, 2022. Employers should review their employment agreements and policies to ensure they’re in compliance with the new law.

Background

Throughout 2022, Congress took aim at limiting employers’ abilities to restrict claims of workplace sexual assault or sexual harassment. On March 3, 2022, President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 into law.

This law amended the Federal Arbitration Act (FAA) to prohibit predispute agreements and class-action waivers which would require employees to arbitrate disputes involving sexual assault or sexual harassment. Arbitration of these types of disputes is still legal with an employee’s consent, but employers can’t compel or mandate by agreement that sexual harassment or sexual assault disputes be arbitrated.

Recently, Congress passed legislation that further limits the restriction of sexual harassment and sexual assault claims. On November 16, 2022, Congress passed the Speak Out Act, which was signed into law by President Biden shortly afterwards.

The Speak Out Act