If you’ve experienced sexual harassment at work and were told your arbitration agreement bars you from suing — think again. Historically, an arbitration clause, buried in the avalanche of first-day HR paperwork, was a binding contract that required you to resolve serious disputes like harassment in private rather than in court. Arbitration is confidential, often skewed toward employers, and notoriously lacks transparency.
That’s no longer the end of the story.
Federal Law Now Puts the Power Back in Employees’ Hands
In 2022, Congress enacted the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), a bipartisan statute that overrides pre-dispute arbitration clauses in cases involving sexual assault or sexual harassment.
The law gives survivors the unilateral right to choose between public court proceedings and private arbitration—regardless of what they signed at the start of their employment. It applies nationwide and cannot be waived by a blanket arbitration agreement.
The Loophole Employers Were Using—and Why It Just Got Shut Down
Post-EFAA, some employers tried to sidestep the law using “choice-of-law” provisions—contract clauses specifying that a particular state’s law governs the agreement. The strategy? Pick states perceived to be more favorable to employers in arbitration enforcement.
But in a pivotal February 2025 ruling, the California Court of Appeal struck that maneuver down.
Inside Casey v. Superior Court of Contra Costa County
In Casey, a California employee sued for workplace sexual harassment. Her employer moved to compel arbitration, citing a choice-of-law clause anchoring the agreement in California law. A lower court initially upheld the employer’s position. But on appeal, the court reversed.
The appellate court held that the EFAA, as a federal statute, preempts conflicting state laws or contract provisions. Arbitration cannot be enforced if the claim falls within the scope of the EFAA—even if the contract designates a particular state’s legal framework.
The Implications: Precedent and Protection
This is more than a win for one employee—it’s precedent. It clarifies that employees across the United States can invoke the EFAA, irrespective of where they live or what their employment contracts say.
As attorney J.J. Dominguez of The Dominguez Firm emphasized, “This ruling eliminates ambiguity. If you’ve suffered sexual harassment and your employer failed to act or retaliated, you have the right to take your claim to court. Arbitration clauses are no longer a shield employers can hide behind.”
What Should You Do Now?
If you’ve faced workplace sexual harassment and were told you’re locked into arbitration, the legal landscape has shifted. You can sue. You can go public. And you can hold your employer accountable.
Speak up. The law is now on your side.