Bloomberg Law
March 23, 2022, 9:00 AM

ANALYSIS: Forced Arbitration Ban to Spur Corporate Disclosures

Preston Brewer
Preston Brewer
Legal Analyst

The recently enacted Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 abruptly halts a common corporate practice of requiring arbitration of sexual harassment claims in employment contracts, creating more risk for many companies.

The law will likely lead to internal corporate risk assessments and, for public reporting companies, an increase in internal investigations and more robust public disclosures. These actions could shine an unflattering light on the oft-hidden bad behavior of corporate executives and on any corporation found to have helped keep the unsavory details under wraps, damaging reputations and disrupting business as usual.

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