In the high-stakes world of trucking, the looming threat of serious accident litigation is a constant reality for many companies. When such situations arise, it’s crucial for owners and executives to understand that the future of their company may be at stake. This was a key takeaway from the recent address by Rob Moseley, a
President Biden Signs Bill to End Mandatory Arbitration of Sexual Harassment and Assault Claims in the Workplace
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On March 3rd, 2022, The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (H.R. 4445) was signed by President Biden, taking immediate effect. This law passed the House of Representatives on February 7th with bipartisan support. In the Senate, H.R. 4445 was passed by voice vote, without amendment, only three days later.
What Does This Law Mean For Employers?
H.R. 4445 is an addition to the Federal Arbitration act. Under the new law, persons alleging sexual harassment or assault, as defined by state or federal law, are permitted to invalidate any pre-dispute arbitration agreements or joint-action waivers that may be in play. This only applies to such agreements made prior to the dispute. Any arbitration agreements reached after the dispute arises are not impacted by this law. Additionally, any disputes that emerged prior to the passage of this law are not impacted.
Employers need to be aware of this law for many reasons. The most significant and immediate change for employers will come down to the language of their employment contracts. A thorough review of any and all arbitration agreements and policies is advisable. Employers should consult with knowledgeable labor and employment attorneys to identify contract language that needs to be updated.
Since this is such a new law, many of its finer points have yet to be litigated in the courtroom. Employers should be aware of its obvious and immediate ramifications. In addition, new strategies for crisis management must be considered and developed, as proactive arbitration agreements will no longer be a viable option for companies that want to responsibly prepare for future litigation.
Of course, the most effective way to avoid the negative consequences of the new law is to place a renewed focus on human resources standards and training. It is the goal of every ethical employer to create a harassment-free workplace because that outcome keeps employees safe and benefits everyone. However, ending forced arbitration in these cases can leave employers with fewer options when such behavior is alleged. Ultimately, it makes sizable, public judgments against employers a more likely possibility. As a result, employers should do everything in their power to prevent cases like these from occurring in the first place.
Legal Expertise Can Lend Confidence in the Midst of Changes
Any changes to your internal standards and training on sexual harassment should be made with help from employment law experts. Strategies for risk mitigation and crisis management should be reexamined and updated. Finally, the legal language of your employment contracts ought to be revisited and revised.
Employers navigate a sea of ever-changing laws and regulations at every stage for everyone they employ. No matter their intention, each new law carries with it an imperative to act and prepare for even the most unthinkable outcomes.
Don’t wait until your business encounters a problem like this to address your organizational response. Contact an experienced and qualified employment attorney for specialized guidance for your unique situation. You can contact Hughes Lawyers online or give us a call any time. We are ready to discuss how to protect your business now and in the future.
