President Biden signed a new law that bars mandatory arbitration in workplace sexual assault and harassment cases. Support for the law was garnered from the #MeToo movement that shined the spotlight on the problem of sexual harassment and sexual assault and how arbitration agreements insulate repeat offenders from public exposure.
According to the American Association for Justice, roughly 60 million workers are subject to mandatory arbitration provisions at their place of employment. Thus, the impact of the law is huge. Now is a good time for employers to review their existing arbitration agreements and evaluate whether they should be revised to carve out sexual harassment and sexual assault cases.
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