Forced Arbitration Ending with New Legislation

A new sexual harassment bill has passed through Congress and is expected to be signed by Joe Biden later this week. Many Americans have terms in their contracts that makes arbitration with alleged perpetrators mandatory after submitting a claim for sexual assault or harassment. These arbitration clauses keep misconduct allegations private because they are often followed up with a Nondisclosure Agreement preventing any further discussion about the topic. Further, they limit legal options because they do not allow for an appeal. They can also be costly, which can be a heavy burden on the worker making the claim.

This bill will void any current arbitration clauses that are in effect and it will be illegal to include them in any other contract once the bill is signed into law. Furthermore, these claims are not restricted to just workplace claims – this bill will cover all forced arbitration clauses in any type of contract. It will also help bring to light the misconduct that is occurring that employees are scared to report. Finally, this bill will also allow for more damages to be won for the victim because you are able to bring the suit into court. This does not mean you can't have arbitration; it just means you aren't being forced into an option that doesn't work for your situation.

This new bill will bring new light to sexual assault and sexual harassment in the workplace. If this has happened to you, or someone you know, you will need an experienced attorney to help you navigate the process and Asonye & Associates are ready to assist you as much as they can.

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