Viewed as a risk mitigation tool, arbitration clauses are included in employment contracts and policies to route employer/employee disputes to a private forum and outside of the courthouse. Employers are attracted to such clauses because they are believed to be cost-effective and a confidential resolution of claims. As part of the #MeToo movement, however, such clauses are scrutinized, suggesting they tip the playing field in an employer’s favor. Fueled by Fox News’ highly publicized sexual harassment case filed by former anchor Gretchen Carlson, Congress passed a bill on February 10, 2022, that invalidates employer/employee agreements for sexual assault and sexual harassment cases. President Biden is expected to sign the bill into law soon.
