The U.S. Court of Appeals for the Sixth Circuit has declined to reconsider its decision in Bruce v. Adams & Reese, LLP, affirming that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) invalidates pre-dispute arbitration agreements for entire cases that include sexual harassment claims. This decision underscores the court’s interpretation that the EFAA’s provisions extend beyond individual claims to encompass all claims within a lawsuit when a sexual harassment allegation is present.
In the original ruling, the Sixth Circuit addressed whether the EFAA’s language, which renders arbitration agreements unenforceable “with respect to a case” relating to sexual harassment disputes, applies solely to the sexual harassment claim or to the entire lawsuit. The court concluded that the term “case” refers to the entire civil action, thereby preventing the enforcement of arbitration agreements for all claims within such a lawsuit. This interpretation aligns with the legislative intent to allow victims of sexual harassment to pursue their claims in court, rather than being compelled into private arbitration. ([crowell.com](https://www.crowell.com/en/insights/client-alerts/sixth-circuit-finds-efaa-arbitration-bar-to-entire-case-not-just-sexual-harassment-claims?utm_source=openai))
Adams & Reese LLP had sought a rehearing, arguing that the EFAA should not invalidate arbitration agreements for claims unrelated to sexual harassment within the same lawsuit. However, the court found that these objections had been previously considered and did not warrant a different outcome. ([law360.com](https://www.law360.com/articles/2446131?utm_source=openai))
This decision has significant implications for employers and legal practitioners. It emphasizes the necessity for organizations to reassess their arbitration agreements and be prepared for the possibility that any lawsuit containing a sexual harassment claim may proceed entirely in court, regardless of other claims included in the case. Employers are advised to review their policies and training programs to mitigate the risk of sexual harassment claims and to understand the broader impact of the EFAA on dispute resolution strategies. ([ogletree.com](https://ogletree.com/insights-resources/blog-posts/sixth-circuit-finds-sexual-harassment-claim-can-bar-entire-case-from-arbitration/?utm_source=openai))
The Sixth Circuit’s stance contributes to a growing body of case law interpreting the EFAA broadly, reinforcing the trend toward increased transparency and accountability in addressing workplace sexual harassment. Legal professionals should monitor developments in this area to provide informed counsel to clients navigating the complexities of arbitration agreements and employment litigation.