In wake of new harassment law, 4 steps to review your arbitration agreements.

If you ask employees to sign agreements requiring arbitration of work-related disputes or claims, call a meeting with your attorney.

On March 3, President Biden signed a bipartisan-backed bill that prohibits employers from requiring arbitration of sexual harassment claims. The new law gives workers the choice of going to arbitration or to court to resolve sexual harassment claims.

Employee advocates have long argued that mandatory arbitration of harassment claims allows employers to protect harassers, keeping their misdeeds secret and preventing victims from publicly discussing their claims.

Critical issue: This law also invalidates existing agreements that require arbitration of sexual harassment claims, no matter when they were signed. So you will have to amend your current arbitration agreements to comply with the new law. Here is what to do:

  1. Identify all mandatory arbitration agreements that you have with employees.

  2. Meet with your attorney to review the language in these pacts. See if they specifically require arbitration...

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