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Employers Take Note: Mandatory Arbitration of Sexual Harassment Claims is Prohibited

On March 3, 2022, the Federal Arbitration Act was amended to allow employees subject to pre-dispute mandatory arbitration agreements to pursue their claims of sexual assault or sexual harassment in court. The amendment defines a “sexual harassment dispute” as “a dispute relating to conduct that is alleged to constitute sexual harassment under applicable Federal, Tribal, or State law.” The claimant alone may elect to arbitrate those claims if he or she desires.

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