Notable provisions include:
- Prohibits the enforceability of pre-dispute arbitration agreements in employment contracts with respect to sexual assault claims.
- Limits the enforceability of pre-dispute arbitration agreements in employment contracts with respect to sexual harassment claims unless the agreement allows a plaintiff to publicly discuss a sexual harassment claim that will be arbitrated (unless both parties mutually agree otherwise) with the right to report harassment to civil and criminal law enforcement authorities, among other provisions.
- Reduces attorneys’ monetary gain for sexual harassment claims by limiting the percentage of the reward payment to the plaintiff’s attorney and ensuring that victims rather than attorneys receive any reward first.
Outlook: The bill has been referred to the Judiciary Committee and currently does not have any additional co-sponsors. It is not likely the bill will get any traction this Congress, with Democrats holding the majority in both chambers. Nevertheless, it is noteworthy that at least one Senate Republican is willing to impose new limits on arbitration agreements, which have come under attack from congressional Democrats.
