Broker Check

New Law Could Increase Harassment and Assault Costs

March 02, 2022
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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).