Congress Passes Bill Prohibiting Predispute Arbitration Agreements in Cases of Workplace Sexual Assa

With strong bipartisan support, Congress passed a bill to make arbitration agreements applicable to workplace sexual assault or sexual harassment unenforceable unless voluntarily entered into by the employee after an alleged assault or harassment occurs. President Biden is expected to sign the legislation into law.

The Senate passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (H.R. 4445/S. 2342) by voice vote. Earlier this week, the House passed the bill by a vote of 335-97, with 113 Republicans’ support. The measure could relieve pressure to further erode the Federal Arbitration Act, which generally allows parties to agree to a contract in advance requiring any future disputes will be resolved through arbitration to avoid the time and cost of litigation. However, it could also serve as a first step toward further restrictions on arbitration agreements or an outright ban.

Outlook: The bill will now go to President Biden’s desk and he is expected to sign it. Despite passage of H.R. 4445, next month the e House is expected to consider the Forced Arbitration Injustice Repeal Act (FAIR Act) (H.R. 963/S. 505), which would ban pre-dispute arbitration agreements in employment and consumer contracts. Last year, the Association urged lawmakers to oppose the FAIR Act.