When we filed a case for a whistleblower who said he was fired for reporting harassment of his coworkers, it wasn’t surprising that his employer tried to move the case to private arbitration instead of letting it stay in a public courtroom.
The court decided not to force arbitration and ruled that the case can move forward in court under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA). This decision is important because it shows that, under the EFAA, employees who report harassment have the right to take their claims to court, even if they weren’t the ones directly harassed. Read the ruling here.
For years, companies used forced arbitration to keep sexual harassment claims secret. In 2022, Congress passed the EFAA to end this practice and allow these cases to go to court.
This post explains what forced arbitration is, how it harms employees, and how the EFAA is helping survivors, whistleblowers, and everyone who wants a fair workplace.
What Is Forced Arbitration?
Forced arbitration is hidden in many employment contracts and makes employees handle disputes with a private arbitrator instead of going to court. These private arbitrations often favor the employer and are hard to challenge. This secrecy keeps victims quiet and stops companies from being held publicly accountable.
Key problems with forced arbitration:
- Employees often don’t realize they’ve given up court rights.
- Arbitration outcomes are final and rarely appealed.
- Confidentiality keeps patterns of abuse hidden.
Why Was Forced Arbitration a Problem?
For years, forced arbitration kept survivors of sexual harassment and assault quiet. Victims had to go through private, secret processes, which protected the wrongdoers and allowed toxic workplaces to continue. When problems stay hidden, nothing gets better and more people get hurt.
What Does the EFAA Change?
The EFAA gives employees more power by protecting them from being forced into private arbitration for sexual assault and harassment cases. Signed in 2022, it stops companies from requiring arbitration in these cases and allows workers to take their cases to court instead. Here’s what the EFAA does:
- Choice: Survivors and reporters can pick court or arbitration.
- Transparency: Court cases are public, so employers can’t hide misconduct.
- Accountability: Ending forced secrecy encourages others to come forward, exposing toxic patterns.
- Better Workplaces: Companies are motivated to adopt safer, stronger policies.
Why Did the EFAA Pass?
The law is the result of years of advocacy, especially after the #MeToo movement revealed how much workplace abuse was being hidden through arbitration. Famous cases showed how arbitration allowed abusers to escape punishment, leading to more demand for change.
Final Thoughts
The EFAA is a big step for fairness at work. It stops forced arbitration in sexual harassment cases, giving employees more power and holding people accountable. This helps create safer and more respectful workplaces. The passing of the EFAA shows that change is possible and justice works best when it’s open and fair.
Have you faced retaliation at work? Contact Jeff.
The case was filed in the United States District Court for the Northern District of Illinois and captioned as Thomas v. Pooh Bah Enterprises, Inc., Case No. 25 C 0077.
NOTICE: The information contained in this post comes from allegations made in a legal complaint which was filed in the public record with the court. Please note that this is a contested matter. As a result, it is expected that the allegations will be opposed or denied by other parties and the court has not ruled on the merits as of the date of this statement.
