The past several years have witnessed some substantial changes to laws surrounding the forced arbitration of employment disputes, both at the federal and state levels.
In 2021, for example, the landmark Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act was passed on the federal level, barring employers from enforcing arbitration clauses for these claims. In contrast, in 2023, the California Supreme Court reversed its prior precedents and permitted employers to make signing arbitration clauses a condition of employment.
While the state Supreme Court’s ruling has been controversial, a recent Second District Court of Appeals ruling has softened the blow to workers. As of January 29, 2024, the appellate court has confirmed that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applies retroactively in California. In short, California employers cannot require you to attend arbitration if you’ve filed a sexual harassment claim. Let’s break down how the Act and the appellate court’s decision protect your rights and what they mean for you.
What Is the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021?
The federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFASASHA) of 2021 represents a pivotal change in employment law, offering new protections for employees facing sexual assault and harassment in the workplace. This groundbreaking legislation prohibits employers from mandating arbitration for these specific types of claims, allowing employees the option to take their cases to court instead. Historically, arbitration clauses in employment contracts have compelled employees to resolve such disputes privately, away from the public eye, and often without the opportunity for appeal.
The enactment of this law was a significant victory for advocates of workers’ rights and survivors of sexual misconduct. It underscores a societal acknowledgment of the need for greater transparency and accountability in addressing these serious issues within the workplace. By removing the veil of forced arbitration, the Act paves the way for more open and public adjudication of sexual harassment and assault allegations, which can lead to a more just outcome for survivors.
Understanding Kader v. Southern California Medical Center Inc.
As with many federal laws, the true extent of EFASASHA’s impact has taken time to be determined. All laws are subject to judicial review. If the courts find that a law is unconstitutional or contradicts another, higher authority, they may invalidate that law by setting new precedents in their rulings. However, they may also confirm and empower laws through their decisions, such as by determining if a given regulation should be interpreted broadly or narrowly.
That brings us to the California ruling that affirmed California’s stance on forced arbitration for sexual assault in the workplace. The case Kader v. Southern California Medical Center Inc. (2024) involved the plaintiff, Omar Kader, filing a lawsuit against his employer for sexual harassment and assault. After the enactment of EFASASHA, Kader sued, challenging a prior arbitration agreement. The initial ruling was appealed and brought before the Second District Court of Appeals for California. In a published ruling, the appellate court declared that the arbitration agreement was invalid under the new law because the dispute arose after the agreement and the Act’s effective date, affirming the trial court’s denial of the motion to compel arbitration.
This case clarified several things for California employers and employees alike. First, it set the precedent that state courts would enforce EFASASHA broadly. Second, it explained that the courts would consider the Act to apply retroactively so that it would cover even voluntary arbitration agreements signed prior to 2021. In other words, the Second District Court of Appeals made it clear that forced arbitration will not be acceptable or permitted for sexual assault and harassment cases in California.
The Impact of the Lawsuit on California Employees
Employees stand to gain significantly from the Kader ruling. By removing the constraint of forced arbitration, it opens up the possibility of pursuing claims in a public forum, offering a chance for a more transparent judicial process and potentially broader remedies. Furthermore, the Act serves as a deterrent against workplace sexual misconduct, encouraging employers to take proactive measures to prevent harassment and assault.
In other words, California’s stance toward EFASASHA gives workers an empowered choice in how to pursue justice. It opens the door to potentially more favorable public court systems, where the rules of evidence are stricter, and the right to an appeal exists.
This is excellent news for workers. The process of a public trial ensures greater transparency and fairness and often leads to larger settlements for victims of assault and abuse. Conversely, arbitration can limit workers’ rights. The confidential nature, limited discovery, and lack of appeals potentially favor employers due to repetitive engagements with arbitrators and prevent workers from seeking outside help. The Kader ruling ensures that all employees in California can seek a fair trial for sexual assault allegations without being forced into silence through arbitration.
Exercise Your Right to a Fair Trial for Sexual Harassment in the Workplace
In conclusion, the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 marks a critical advancement in protecting workers’ rights and ensuring justice for victims of sexual misconduct in the workplace. The Kader ruling shows that California courts recognize exactly how important this is to workers’ rights after facing harassment and assault at work.
If you’ve faced harassment or sexual assault at work, you can now file a civil lawsuit against your employer in confidence. The experienced employment attorneys at the Law Offices of Todd M. Friedman, P.C., can help. We are dedicated to fighting for victims of harassment in the workplace and helping them achieve fair compensation for the harm they’ve suffered.
Don’t hesitate to get help if you’ve been harassed or assaulted, even if you’re subject to an arbitration agreement. Instead, schedule a consultation with our proven lawyers to learn more about how we can help you hold your employer accountable for harming you through a public trial.
