The new legislation may significantly impact the utility of mandatory and voluntary arbitration agreements in the employment setting.

Key Points:

..The law permits predispute arbitration agreements and joint, class, and collective action waivers to be voided with respect to cases filed under federal, state, or tribal law relating to sexual assault disputes and/or sexual harassment disputes.

..This means employees and independent contractors who file cases relating to sexual assault and/or sexual harassment disputes may be able to litigate their claims in court if they prefer, despite having previously agreed to arbitrate such claims, and may do so on a joint, class, or collective basis, in court or in arbitration, even if they previously waived that right.

..The law affects both mandatory and voluntary predispute arbitration agreements and joint, class, and collective action waivers.

..The law applies to any dispute or claim that arises or accrues on or after the date of the law’s enactment, March 3, 2022.