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Congress passed a bill that changes how businesses resolve workplace harassment allegations if an employer arbitrates sex harassment cases. Often, employers who arbitrate these claims require this in an employment contract, which will no longer be allowed.

The law guarantees that victims of workplace sexual harassment or assault can pursue a lawsuit in court. The bill amends the Federal Arbitration Act to ban any agreement that mandates arbitration for workplace sexual harassment claims when the agreement was signed before the dispute. Employees may still opt for arbitration if that is their choice. “The bill would apply to any new claims, regardless of when the bad behavior occurred and barring any state or local law that might limit when a claim is brought,” said a spokesperson for Rep. Cheri Bustos (D-Ill.), who helped write the bill.

Attorneys speculate that this will cause companies to reexamine all mandatory arbitration agreements for any type of harassment. If you have an arbitration agreement and are wondering what to do now, Employer Council can help. Employers with an Employers Council Consulting or Enterprise membership and members who have not renewed under the new member model may also contact an Employers Council attorney to discuss their situation.