EFAA Application to Employee Arbitration Agreements

This document is a legal analysis regarding the application of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) to employee arbitration agreements in cases of sexual harassment. It outlines a recent ruling by the Second Circuit, which determined that a plaintiff's hostile work environment claims were subject to the EFAA, despite the claims arising prior to the law's enactment. The document details the case background, including the Federal Arbitration Act's provisions and the EFAA's effective date. It describes the case procedure in Olivieri v. Stifel, Nicolaus & Co., Inc., where the plaintiff amended her complaint to include claims under Title VII after the EFAA was signed into law. The Eastern District of New York's decision to deny the defendants' motion to compel arbitration is discussed, emphasizing the continuing violation doctrine. The Second Circuit affirmed this decision, clarifying that ongoing hostile work environment claims can still fall under the EFAA, thus invalidating the arbitration agreement. It concludes with key takeaways for employers regarding the implications of the EFAA.