California Courts Resist Broad Protections from Forced Arbitration for Victims of Workplace Sexual Harassment and Assault

There is a growing trend among employment rights advocates, legislatures, and some courts to weaken the power of employers to force employees into arbitration agreements. While such agreements are enforceable under many circumstances, there are cases where forced arbitration clauses have been rejected as unconscionable. In 2022, the U.S. Congress passed a law to protect victims of workplace sexual harassment and assault from being compelled into arbitration for their claims. This shift in the legal landscape was recently addressed by the California Court of Appeal, which dealt with an employer’s complaint about an employee not being required to pursue their sexual harassment claim through arbitration.

The Facts of the Case

The facts leading up to the case began when the employee worked as a Dietary Aid for the employer from December 2020 to July 2021. The employee alleged that several coworkers, especially one, made sexist and offensive remarks towards her. She reported inappropriate touching, offensive staring, and sexual comments, which escalated to an assault in a closet. Despite reporting this conduct to a supervisor in June 2021, the employer conducted what she described as a sham investigation, after which the coworker returned to work. Feeling unable to continue working under these conditions, the employee resigned in July 2021 and filed complaints with the Equal Employment Opportunity Commission and the California Department of Fair Employment and Housing. Following this, she filed a lawsuit in March 2022, claiming sexual battery and battery, hostile work environment harassment, failure to prevent harassment, and constructive discharge in violation of public policy.
The lower court initially sided with the employee by granting her request to prevent arbitration, determining that the recent federal legislation applied to her case and voided the arbitration agreement. This ruling was a significant advantage for the employee, as arbitration generally favors employers. However, the employer appealed the ruling, aiming to compel arbitration once again.

The Case Goes Up on Appeal

The higher court ultimately sided with the employer. The court reasoned that the federal law did not apply to prevent the employee’s claim from being forced into arbitration because the dispute arose before the law’s effective date. Although the employee filed her lawsuit after the Act’s enactment, the court found that the actual dispute began when she reported the harassment and filed charges with the relevant agencies in 2021. This interpretation meant that the arbitration agreement between the employee and her employer was still valid. As a result, the employee must now pursue her claims through arbitration, a forum that can be more challenging for employees. However, with the help of a skilled attorney, she still has a real chance of obtaining relief for her claim.
Despite legislative efforts to diminish the power of arbitration clauses, language inserted by lobbyists for employers can still compel claims into arbitration. For this reason, individuals facing employment law issues should retain qualified counsel quickly to best prevent their claims from being forced into arbitration. Having legal representation during arbitration significantly increases the chances of a successful claim, as experienced attorneys can navigate the complexities of the arbitration process and advocate effectively on behalf of their clients.

Speak with an Experienced California Employment Lawyer

If you are dealing with an employment law issue, reach out to Hardin Law Group for assistance with your claim. The odds can be against employees, and even with improving federal protections, state courts still have the ability to make it more difficult for employees to avoid lopsided arbitration proceedings. With the help of Hardin Law Group, clients can be confident in having the best chance of recovery. Reach out for a no-obligation free consultation and let us help you protect your rights and secure the justice you deserve. Call us at (949) 337-4810 or use our online form to schedule a free consultation today.