Cleary Gottlieb Discusses End of Mandatory Arbitration for Sexual Misconduct Cases

On March 3, 2022, President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act[1] into law.  The law amends the Federal Arbitration Act (“FAA”) to prohibit the use of mandatory arbitration provisions to resolve sexual harassment and sexual assault claims, allowing survivors the option of litigating their claims in court.

Background

The use of mandatory arbitration provisions in employment and other contracts for claims involving sexual harassment and sexual assault has garnered increased public scrutiny in the past few years.  Today, more than 60 million Americans are currently subject to mandatory arbitration clauses, requiring binding … Read more