Congress recently passed a bill, in unanimous agreement, to end the long-ending corporate practice to settle sexual misconduct cases internally through closed-door arbitration rather than filing a suit through court. This bill is currently being sent to President Biden to review and sign. If passed this would be one of the largest employment reform laws of the last 50 years. Employers would be prohibited from exclusively settling sexual harassment cases through arbitration. Instead, serious harassment cases, including instances of sexual harassment, can now be adjudicated in state court. More significantly, this law can be applied retroactively, and reopen closed cases to reevaluate them in a court of law.
Opponents of this bill claim that arbitration is a fair, efficient, and cost-effective way to resolve disputes without burdening the judicial system. On the other hand, proponents of the bill claim that eliminating forced arbitration prioritized victims’ rights and allows their cases to be heard in a court of law with their own representation rather than behind closed doors. It is important to note that the victim can choose to pursue their claim through adjudication or court.
Despite the unanimous support, proponents of the bill fear it is insufficient. The law would only apply to harassment cases, instances of gender discrimination or other forms of discrimination can still be settled through arbitration.
This blog post is part of the CIMA law group blog. If you are located in Arizona and are seeking legal services, CIMA law group specializes in Immigration law, Criminal Defense, Personal Injury, and Government Relations.
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