If you have ever signed an employment agreement that says all disputes must go to arbitration, you are not alone. Many New Jersey workers sign these clauses on day one, then learn about them only after something goes wrong at work. A new published decision from the New Jersey Appellate Division makes one point much clearer for employees: when you bring a viable sexual harassment claim, you should be able to keep your entire case in court, and not just the harassment claim.
The Takeaway
In McDermott v. Guaranteed Rate, Inc., the Appellate Division held that the federal Ending Forced Arbitration of Sexual Assault and Harassment Act (EFAA), can make a pre-dispute arbitration agreement unenforceable for the whole case, as long as the case includes a viable claim involving sexual harassment or sexual assault. In other words, an employer may not be able to force you to split your claims, with part of your lawsuit in court and the rest in private arbitration, if your case includes a properly pled sexual harassment claim.
This was a matter of first impression in New Jersey, meaning New Jersey appellate courts had not previously issued a published decision on the scope of the EFAA in this context.
New Jersey Employment Lawyer Blog


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