Employment law pop quiz #12
Can the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) apply to pre-enactment events?
"Yes," sometimes.
The EFAA renders arbitration agreements invalid and unenforceable, at the election of the complainant, in sexual assault and sexual harassment cases.
But it applies only to claims that "accrue" after the effective date – March 3, 2022. So the key is to identify when a cause of action accrued.
Recent case in point: A woman claimed she was subjected to a sexually hostile work environment both before and after enactment of the EFAA. The 2nd Circuit held that the EFAA applied, so she does not have to arbitrate.
The court held that her claims accrued before the effective date, and then re-accrued with each successive act that was part of the single continuing course of conduct underlying the hostile work environment claims. This is because a hostile work environment claim is subject to the continuing violation doctrine because, unlike discrete acts, their very nature involves repeated conduct.
Bonus: The court also allowed her retaliation claims to stay in court because such claims fall within the EFAA's definition of a "sexual harassment dispute."
Olivieri v. Stifel, Nicolaus & Company (2nd Cir 08/12/2024) [PDF].
Your results may vary. If you have this issue, consult a good employment lawyer.
(Not me, I'm an arbitrator.)