Biden signs sexual harassment arbitration legislation

President Biden signed into law Thursday federal legislation that forbids mandatory arbitration in sexual harassment and assault cases.

H.R. 4445, the Ending Forced Arbitrations Sexual Assault and Sexual Harassment Act of 2021, passed Congress on bipartisan votes last month.

The law, which takes effect immediately and is retroactive, forbids pre-dispute arbitration agreements in sexual harassment and assault cases and leaves it up to a judge to determine if it is applicable.

During his remarks, President Biden said forced arbitration prevents survivors from going to court, with arbitrations conducted in secret, often by arbitrators selected and paid for by the employee. The outcome is usually hidden and cannot be appealed or overturned, he said.

There will be cases in which victims want their claims resolved in private, “but some survivors will want their day in court, and that should be their choice, and nobody else’s choice,” the president said.

He said he supports legislation that will be considered in the House in coming weeks that would ban mandatory arbitration for all types of employment issues.

Experts have said they fear the legislation will lead to higher legal costs and higher employment practices liability rates.

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