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Effective July 11, 2018, employers are not permitted to
institute mandatory arbitration agreements related to sexual
harassment claims. This means that if an employer currently has a
mandatory arbitration clause built into its standard employment
agreements, separation agreements or settlement agreements, those
documents will need to be edited to carve out an exception for any
claims related to sexual harassment. It is unclear how or whether
the Federal Arbitration Act will pre-empt this prohibition, but it
is possible we will see litigation related to pre-emption in the
coming months.
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