President Joe Biden Thursday signed a bill into law prohibiting employers from forcing arbitration agreements upon victims of workplace sexual assault and harassment. Originally introduced in 2017 by Senators Kirsten Gillibrand (D-NY) and Lindsey O. Graham(R-SC), the bill passed with bipartisan support last month. 

The act amends the Federal Arbitration Act (FAA) to render invalid and unenforceable any pre-dispute arbitration agreement involving workplace sexual harassment and sexual assault. It vests employees with the right to void pre-dispute joint-action waivers and move before an appropriate court or agency under federal, state or tribal law. Enforcement of the act is prospective in nature and applies to all arbitration agreements concerning sexual assault and harassment disputes or claims which are to “arise or accrue” on or after the date of enactment of the amendment.

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” and a sexual assault dispute as “a dispute involving a nonconsensual sexual act or sexual contact . . . including when the victim lacks capacity to consent.”

The Act does not cover disputes and predispute arbitration agreements arising out of claims which do not fall within the ambit of sexual assault and harassment.