Although this momentous legislation was passed over a year ago, the hard-fought bipartisan victory for workers’ rights is still relatively unknown. According to the Executive Office of the President, the new law “empowers survivors of sexual assault and sexual harassment by giving them a choice to go to court instead of being forced into arbitration” when bringing claims against their employer.
Arbitration is a private, non-court method of dispute resolution in which the parties meet with a third-party mediator who hears the evidence and makes a binding decision.
According to a 2018 study by the Economic Policy Institute, 50.4% of U.S. nonunion private sector employers require their employees to sign mandatory arbitration agreements, which “bar access to the courts for all types of legal claims, including employment discrimination and sexual harassment claims.” Another 3.5% of employers “adopt arbitration procedures simply by announcing that these procedures have been incorporated into the organization’s employment policies.” Employees are sometimes unaware that they are bound by these agreements until it’s time to bring a claim against their employer.