President Joe Biden signed H.R. 4445, or the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, into law on Monday.

H.R. 4445 (‘the Law’), repeals forced arbitration requirements when an employee alleges sexual misconduct against their employer. Forced arbitration, a common practice in the private employment sector, requires employees to seek resolution for workplace misconduct in private proceedings (called arbitrations) with appointed arbitrators rather than in public court proceedings.

Several major companies and public figures faced heavy backlash during the #MeToo movement of 2017 after investigations found that forced arbitration had significantly limited the ability of sexual misconduct victims to pursue their claims in a public forum against their abusers. Notable repeat offenders were shielded from the legal consequences of their actions by mandatory arbitration practices that left victims with little ability to appeal final decisions. The Law, which enjoyed strong bipartisan support on its journey to the Presidential Desk, will negate these arbitration requirements when employees allege sexual misconduct.

The attorneys at Farhang & Medcoff will continue monitoring this issue and provide updates as they become available. If you have questions about how this Law may impact your business, or any other legal queries, your trusted legal advisors are here to help.

This writing is for informational purposes only and does not constitute legal advice. No attorney-client relationship is formed by the dissemination of this writing.