Second Circuit Rules Ending Forced Arbitration Act Covers All Claims in Sexual Harassment Lawsuit
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TL;DR
- Second Circuit adopts broad interpretation of the EFAA.
- All claims in sexual harassment lawsuits can bypass forced arbitration.
- The ruling follows similar decisions in the Sixth and Ninth Circuits.
- Employers' arbitration agreements are less enforceable in these cases.
Overview
The Second Circuit has joined the Sixth and Ninth Circuits in holding that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) exempts not only sexual harassment claims but all claims within a lawsuit relating to sexual harassment from mandatory arbitration agreements.
What Happened
The Second Circuit Court of Appeals considered how the EFAA, an amendment to the Federal Arbitration Act, should be applied in lawsuits containing sexual harassment claims alongside other claims.
The court joined other federal circuits in finding that when a lawsuit involves sexual harassment, all related claims in that lawsuit are exempt from enforcement of forced arbitration agreements under the EFAA.
This interpretation means plaintiffs with sexual harassment claims can avoid arbitration for their entire suit, not just for harassment-specific allegations.
The article links this to broader #MeToo movement legal reforms and parallels earlier Sixth and Ninth Circuit rulings.
Context
The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, signed in March 2022, amended the Federal Arbitration Act to carve out an exception for certain employment and sexual misconduct claims.
Federal appellate courts, including the Sixth and Ninth Circuits, previously interpreted this exception to apply to all claims within a related lawsuit.
The ruling reflects broader reforms following the #MeToo movement, aiming to reduce reliance on arbitration for workplace sexual misconduct claims.
Why It Matters
- This ruling strengthens the ability of sexual harassment plaintiffs to pursue litigation in court, bypassing previously compulsory arbitration of any related claims.
- The decision clarifies the scope of the EFAA and creates uniformity among federal appeals courts addressing this issue.
- Employers with arbitration agreements should reevaluate the scope and applicability of those agreements in employment disputes involving sexual harassment allegations.