On February 10, 2022, the U.S. Senate passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (the “Act”). Once signed into law, arbitration agreements and joint-action waivers are unenforceable with respect to most sexual assault or harassment employment claims. Significantly, the Act invalidates all existing arbitration agreements (even those signed prior to the bill’s passage), to the extent they require an employee to arbitrate a sexual assault or harassment claim.

So, what does this mean? Employers need to review their mandatory arbitration agreements and perhaps revise such agreements to clarify that claims involving sexual assault or harassment are no longer subject to the agreement.