United States: arbitration no longer the sole and mandatory recourse for employees in workplace sexual harassment cases

US President Joe Biden is expected to quickly sign into law a bill that after five years finally passed through Congress on 10 February 2022. The long-awaited legislation allows victims of sexual harassment and assault to take their cases to court. First introduced in 2017, the law prohibits employers from forcing employees to settle sexual harassment or assault cases through arbitration and as such these clauses in their employment contracts can be legally challenged. Forced arbitration clauses are widespread in the U.S., and were roundly denounced following the #MeToo movement because they prevent allegations of sexual harassment or assault from becoming public, since those concerned could not file their cases in the courts. An estimated 60 million U.S. workers have such clauses written into their employment contracts. The new legislation will also apply retroactively, effectively nullifying these arbitration clauses. “This is among the largest workplace reforms, certainly in our lifetimes,” stated Sen. Kirsten Gillibrand, who sponsored the legislation.