Articles Posted in Arbitration Agreements

Summary: This article discusses a recent Sixth Circuit decision, Bruce v. Adams & Reese, which held that the EFAA prohibits employers from splitting up a case that has claims other than sexual harassment/assault.  That is, if the case has claims exempted from arbitration under the EFAA, the whole case can go to court as one.

As previously discussed elsewhere in this blog, in 2022 the Biden administration signed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“EFAA”) into law.  This law made it clear that employers were no longer allowed to force employees to “hide” any sexual harassment and assault claims in private, confidential arbitration (where typically the decisionmaker is paid by the employer) instead of being allowed to go to court.  This law was very important for workers because – beyond the fact employers could no longer conceal whether they had been sued for sexual harassment – in general arbitrations favor employers over employees.  The law thus let workers keep their cases in more favorable venues, the courts.

One thing that old article noted that was less than clear was the question of what happened if an employee brought sexual harassment claims in addition to other legal claims – could those other claims be forcibly separated out and put into arbitration anyway?  Some lower courts across the country have looked at the issue, but those are not binding precedents.  On February 25, 2026, however, a Sixth Circuit Court of Appeals decision reached a definite answer – and that answer is no.  In a case involving claims protected by the EFAA, everything can stay together in court.

Cassidy Monska

Dallas Employment Trial Lawyer Cassidy Monska

If you’ve started a new job recently in Texas—especially in a corporate or professional setting—there’s a good chance you were asked to sign an employment contract with a clause about arbitration. Maybe it was buried in a stack of onboarding documents, or maybe it was part of your offer letter. Either way, what may seem like just another HR form could have a major impact on your rights.

So, what is forced arbitration?

On March 3, 2022, President Joe Biden signed into law new legislation banning the use of arbitration clauses in employment contracts that force victims of sexual assault and harassment to pursue their claims in private arbitration rather than in open court. The legislation passed Congress with bipartisan support and has been described as one of the most significant workplace reforms in history. It is estimated that about 60 million Americans are subject to arbitration clauses.

The law allows victims of sexual assault and harassment to have their day in court and to speak publicly about their cases. Until now, victims who had signed an arbitration agreement with their employers were forced to bring their claims in a private and largely employer-friendly arbitration process, where cases are typically decided by a single arbitrator instead of a jury.

  1. What is the new law called?

So, one day your employer asks you to sign a piece of paper that talks about a “dispute resolution” program, including “arbitration.”  Perhaps you instead got paperwork talking about arbitration with your onboarding materials when you started a new job.  Or, maybe you just got an email from your employer saying you are now subject to arbitration “as a condition of employment.”  This article takes a basic look at what these things mean and why seeing them ought to—at the very least—cause you to sit up and think about what your next move should be.  

Arbitration is basically a private court.  The parties (including employees and employers) agree beforehand to submit disputes to a private decisionmaker or decisionmakers to reach a final, binding decision.  Some arbitration programs require the parties to select an arbitrator or arbitrators from a list of candidates associated with a large dispute resolution company like the American Arbitration Association, and might apply rules set by that company.  There is no judge or jury, and the ultimate decision may be kept secret.  Appealing an arbitrator’s decision can be almost impossible, and the rules of an arbitration may be quite different than those in a court.  As a result, employees may have less of an ability to get evidence from their employer. Continue reading ›

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