Broker Check

New Law Could Increase Harassment and Assault Costs

March 02, 2022

Congress has passed, and President Biden is expected to sign, the Ending Forced Arbitrations Sexual Assault and Sexual Harassment Act.

This law prohibits pre-dispute arbitration agreements in sexual harassment and assault cases. These cases would be litigated which would result in higher defense costs and possibly settlements. A public trial could also impact a company's reputation. Higher Employment Practices Liability premiums could result.

It should go without saying that the best defense against these claims is to have a strong policy prohibiting sexual harassment in the workplace (and online, to protect remote workers).