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Arbitration Agreements Deemed Invalid for Sexual Harassment Claims Filed After New Law

August 6, 2024/in Blog, Employment, Uncategorized

The Law Continues to Get Better for Minnesota Employees: MHRA Expanded

July 17, 2024/in Blog, Employment, News

The Minnesota Human Rights Act (MHRA) has been expanded in several important ways that will help employees across Minnesota. Governor Walz has signed a new bill, HF 4109, and it’s packed with great updates to the MHRA to help workers all over the state. Some highlights of the changes include: Key Points of the New […]

Arbitration Agreements Deemed Invalid for Sexual Harassment Claims Filed After New Law

August 6, 2024/in Blog, Employment, Uncategorized

The Law Continues to Get Better for Minnesota Employees: MHRA Expanded

July 17, 2024/in Blog, Employment, News

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Arbitration Agreements Deemed Invalid for Sexual Harassment Claims Filed After New Law

August 6, 2024/in Blog, Employment, Uncategorized

In a significant ruling, a federal appellate court clarified that sexual harassment and similar claims cannot be forced into arbitration. The United States Court of Appeals for the Eighth Circuit affirmed that arbitration agreements cannot be enforced for claims of sexual harassment and assault filed after the enactment of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021. This decision came in the case of Famuyide v. Chipotle Mexican Grill, Inc., where the court upheld a district court’s refusal to compel arbitration based on this new federal law.

The case centers on Eniola Famuyide, who filed a lawsuit against Chipotle in April 2023, alleging sexual harassment and assault by a co-worker, as well as related claims under Minnesota law. Chipotle attempted to enforce an arbitration agreement that was part of Famuyide’s employment contract. However, the court determined that the dispute arose after March 3, 2022, the effective date of the federal law, allowing Famuyide to bypass the arbitration clause.

The ruling highlights the court’s interpretation of when a “dispute” arises under the statute. The court rejected Chipotle’s argument that the dispute began when the harassment and assault occurred in 2021, or when preliminary legal correspondence was exchanged in early 2022. Instead, the court found that no formal conflict or controversy existed between Famuyide and Chipotle before the Act’s effective date, making the arbitration agreement unenforceable.

This decision underscores the protection the Ending Forced Arbitration Act provides to survivors of sexual harassment and assault, ensuring that such claims can be pursued in court, rather than being forced into private arbitration, as long as the disputes arose after the law’s enactment. The Eighth Circuit’s ruling is a clear message that arbitration clauses will not be a barrier to seeking justice in these sensitive and significant cases.

If you have questions about sexual harassment, forced arbitration, or employment law generally, contact our team of experienced trial lawyers today.

The Law Continues to Get Better for Minnesota Employees: MHRA Expanded

July 17, 2024/in Blog, Employment, News

Key Points of the New Law

Intersectional Discrimination: The new law recognizes that discrimination can happen to people who belong to more than one protected group. This means if someone faces unfair treatment because they belong to multiple groups, like being both a woman and a person of color, the law will protect them.
Disability Definition: The law now has a broader definition of “disability.” It includes conditions that come and go or are in remission, aligning more closely with the Americans with Disabilities Act Amendments Act (ADAAA).
Harassment Protection: It’s now clear that harassment based on any protected characteristic (like race, gender, or disability) is against the law, not just sexual harassment.
Familial Status: The definition of “familial status” has been expanded, but the details are not provided in the summary.
Extended Deadlines: If the Minnesota Department of Human Rights (MDHR) dismisses a claim, workers now have 90 days to file a lawsuit, instead of the previous 45 days. This matches the federal Equal Employment Opportunity Commission (EEOC) limit.
Statute of Limitations: If MDHR takes too long to investigate a case, workers won’t lose their right to file a lawsuit because of it. This fixes some old case law problems.
Punitive Damages: There is no longer a cap on punitive damages for claims against non-government entities. This means workers can potentially receive more money if they win their case because their employer intentionally or recklessly violated the law.
Treble Damages: The law confirms that workers can get triple the amount of emotional distress damages, not just economic damages.
Jury Decisions: In cases under the Minnesota Human Rights Act, a jury, not a judge, will decide all damages questions.

How the Law Came to Be

This bill was created by the Minnesota Department of Human Rights (MDHR) and is the first of its kind. The MDHR submitted an omnibus bill that was carried forward and put into law in a bipartisan effort, and signed by Governor Walz. Kitzer Rochel attorneys Frances Baillon, Phillip Kitzer, and Brian Rochel all helped in the effort to expand the MHRA along with many other members of Minnesota’s Chapter of the National Employment Lawyers Association (MN-NELA). Thanks to the effort of many dedicated lawyers and lawmakers, we’ve achieved something amazing by working together. This new law will provide better protection and support for workers in Minnesota.

When Do the Changes Come Into Effect

Some of the new provisions are in effect already because they only clarify the existing law. Any new legal requirement added by the law will go into effect on August 1, 2024. Contact us if you have questions about this exciting new update or employment law more generally.

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