Tag Archive for: forced arbitration

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

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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.

Biden Signs New Law Limiting Arbitration in Sexual Harassment Claims

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Employment claims are often subject to arbitration clauses. This means that employees who want to assert their rights and file a lawsuit are forced to arbitrate their claims instead of going to court. While there are some advantages to arbitration, the arbitration process often favors employers and arbitration clauses reduce the options available to employees in pursuing their claims. Arbitration is also private, which means that workers and sexual harassment survivors are not allowed to tell their story or have their case heard publicly.

On March 3, 2022, President Biden signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021. This new law amends the Federal Arbitration Act to render pre-dispute arbitration clauses unenforceable for sexual assault and sexual harassment claims. This is a step forward in restoring the ability to choose how to pursue these two types of claims.

If you have experienced sexual assault or sexual harassment, contact us. Our experienced employment law attorneys would be happy to discuss your case and help you understand your legal rights and options in light of this new law.

Gretchen Carlson Leads Fight against Sexual Harassment and Forced Arbitration at Work

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Gretchen Carlson, Minnesota native and former Fox News star, is featured in an article by Time Magazine on her fight against sexual harassment at work. Carlson was sexually harassed by her boss, Roger Ailes, then Chairman of Fox News. Since taking her legal claims public, she has been a role model for victims of sexual harassment across the U.S. Carlson is quoted in the article, saying “I think this is happening every single day to women in all walks of life and in all different types of corporations. I’ve heard from so many women, from Wall Street to a tiny little town in Alabama. It’s everywhere.”

Carlson’s story helps shed light on the pervasive problem of sexual harassment in employment settings around the country. Sex discrimination, and sexual harassment, remain very real problems in Minnesota and in nearly every city and state in America.

Carlson is also speaking out against forced arbitration in employment agreements and employee handbooks. She has agreed to testify to congress about the problems of forced arbitration. Says Carlson, “It is a huge problem. Because it’s secret. And it plays into why we think that we’ve come so far in society and we probably really haven’t—because we don’t hear about it.”

Minnesota Senator Al Franken is a co-sponsor of a proposed law to ban forced arbitration, a bill that Carlson supports (Senator Patrick Leahy is also co-sponsor). Teske Katz Kitzer & Rochel has been at the forefront of the fight against forced arbitration. Founding partner Vildan Teske has testified to the U.S. Senate against forced arbitration, has worked with Senator Franken on this important issue, and has been quoted in the media on forced arbitration for consumers.

If you have questions about sexual harassment, have been harassed at work, or would like to learn more about the fight against forced arbitration, contact Teske Katz Kitzer & Rochel today.