Case On Point
Johnson v. Everyrealm, Inc.
(S.D.N. Y. 2023 )
By enacting the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021, Congress ensured that employees asserting claims for sexual assault or sexual harassment could elect to have their claims heard in court, even if they had signed a pre-dispute arbitration agreement. In Johnson v. Everyrealm, Inc., the court had to decide whether the law also applied to other claims, such as pay discrimination or whistleblower retaliation, which might accompany a claim of sexual harassment or assault. Relying on the language of the statute referring to a "case" rather than a "claim", the court held that it did, provided the sexual harassment or assault was plausible. This distinction is intended to deter employees from evading applicable arbitration provisions in employee agreements by fabricating sexual harassment or assault claims.
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