California Employment Law

Forced Arbitration and Sexual Harassment Claims in California

Benjamin Eghbali, Esq.Reviewed by Benjamin Eghbali, Esq.,

Usually you cannot be forced into arbitration. A 2022 federal law gives the choice of court to the person bringing a sexual harassment case. Here is how it works.

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Eghbali Law Firm, California employment attorneys Sexual Harassment

Usually not. Since March 3, 2022, a federal law lets a person bringing a sexual harassment or sexual assault case choose court, even if they signed an arbitration agreement. California courts have applied that law broadly: when it covers one claim, the whole case stays in court.

Many employees signed an arbitration clause in a stack of hiring paperwork and assume it ended their right to a jury. For sexual harassment it very likely did not. This page explains the law, the California decisions, the date question, and what to do before the employer makes its move.

The short answer

  • You choose. An arbitration agreement signed before the dispute cannot be enforced against a sexual harassment or sexual assault case if you elect court.
  • The whole case stays in court, including retaliation, wrongful termination and wage claims filed with it.
  • Class and group action waivers fall the same way.
  • A judge decides whether the law applies, even if the agreement says an arbitrator will.
  • The date that matters is when the dispute arose or the claim accrued, not when you signed.
  • Only agreements made before the dispute are affected. Do not sign a new one afterward without advice.
  • You can still pick arbitration if it suits your case.

The federal law

The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 was signed on March 3, 2022. It amended the Federal Arbitration Act, the same statute employers rely on to enforce arbitration clauses.

What the law covers
QuestionAnswer
Who chooses?The person alleging the conduct. Not the employer
Which agreements?Any agreement to arbitrate made before the dispute arose: an offer letter, a handbook acknowledgment, a box clicked during onboarding
Which disputes?A sexual harassment dispute, meaning one relating to conduct alleged to be sexual harassment under federal, tribal or state law. And a sexual assault dispute, meaning one involving a nonconsensual sexual act or sexual contact
Which courts?A case filed under federal, tribal or state law. A California state court case under the Fair Employment and Housing Act qualifies
Class and group waivers?A waiver signed before the dispute cannot be enforced in such a case either
Who decides if the law applies?A court, not an arbitrator, even where the agreement hands that question to the arbitrator
When does it apply?To any dispute or claim that arises or accrues on or after March 3, 2022

Because the law borrows the state definition of sexual harassment, California's broad definition counts. That includes hostile conduct based on sex or gender that is not sexual in nature.

How California courts have applied it

Published California Court of Appeal decisions
DecisionWhat it held
Kader v. Southern California Medical Center, Inc. (2024)A dispute arises when the two sides actually disagree, for example when a complaint or charge is made. It does not arise on the day of the conduct or the day the agreement was signed
Doe v. Second Street Corp. (2024)Harassment that continues is one claim that accrues on the date of the last act. If any of it happened after March 3, 2022, the law applies. All claims in the case are then exempt
Liu v. Miniso Depot CA, Inc. (2024)The law exempts the entire case from arbitration, not only the harassment claims
Casey v. Superior Court (2025)An agreement cannot escape the federal law by choosing state law. The wage claims stayed in court too

The practical result in California: plead a genuine sexual harassment claim, and the employer's arbitration agreement stops working for the case as a whole.

The date question

Does the law reach your situation?
Your timelineLikely answer
Everything happened after March 3, 2022Covered
The harassment started earlier and continued past March 3, 2022Covered. A continuing violation accrues on the last act
The conduct ended before March 3, 2022, but you first complained or filed afterOften covered. The dispute arose when the two sides took opposing positions
The conduct, your complaint and the employer's denial all came before March 3, 2022Not covered by this law. California's own protections still apply

The date you signed the agreement is irrelevant. An agreement from 2010 is treated the same as one from last year.

If the federal law does not apply

California law has its own limits on employment arbitration. An employer that wants to enforce an agreement has to get past each of these.

  • Proof that you agreed. The employer must prove an agreement exists. An unsigned handbook page or an electronic signature it cannot tie to you may not be enough.
  • Minimum fairness. For claims under the Fair Employment and Housing Act, the California Supreme Court requires a neutral arbitrator, adequate discovery, a written decision, every remedy a court could award, and no cost to you beyond what a court would charge.
  • No one-sided terms. An agreement that shortens your filing deadline, limits your discovery, or binds you but not the employer can be struck down as unconscionable.
  • Waiver. An employer that litigates in court for months and then asks for arbitration can lose the right.
  • Unpaid fees. The employer must pay the arbitration provider's fees within 30 days of the due date. If it does not, the statute treats that as a breach and lets you return to court. In 2025 the California Supreme Court upheld that statute, while allowing a court to excuse a late payment that was not willful, grossly negligent or fraudulent.

Court or arbitration: what you are choosing between

The practical differences
FeatureCourtArbitration
Who decidesA jury of twelve. Nine must agreeOne arbitrator, usually a retired judge or a lawyer
Public or privatePublic recordPrivate
Who pays the decision makerThe publicThe employer
Gathering evidenceFull discovery under the court rulesMust be adequate, often narrower
AppealA full right of appealVery limited. An arbitrator's errors of fact or law generally cannot be corrected
SpeedSlower. Trial dates depend on the court's calendarOften faster
Group claimsPossibleUsually waived by the agreement
RemediesAllThe same remedies must be available

Employers write arbitration clauses because they prefer that forum: no jury, no public record, and a decision maker they may appear before again. That does not make arbitration wrong for every case. A person who values privacy and speed above all may choose it. The point of the law is that the choice is now yours.

What the employer will do

  1. It files a motion to compel arbitration, usually as its first response to the lawsuit.
  2. Your lawyer opposes it under the federal law, and under California law in the alternative.
  3. The judge decides. This commonly adds two to four months at the start of a case.
  4. If the employer loses, it can appeal at once. Since January 1, 2024, that appeal no longer automatically freezes the case in a California trial court. In federal court the case does pause during such an appeal.

How this fits into the life of a case: how long a sexual harassment case takes.

What to do now

  1. Find out what you signed. Ask HR in writing for a copy of everything you signed. California law entitles you to one.
  2. Sign nothing new. An agreement made after the dispute has arisen is outside the federal law. If new paperwork appears after you complain, have it read first.
  3. Check for an opt-out window. Some agreements give a new hire 30 days to opt out.
  4. Do not start an arbitration yourself before getting advice. Filing a demand can be treated as your election.
  5. Write down three dates: when the conduct began, the last act, and when you first complained.
  6. Keep your deadlines in view. An arbitration agreement does not extend them. See every filing deadline.

Questions people ask

Can my employer force my sexual harassment claim into arbitration?+

Usually not. Under a federal law in force since March 3, 2022, an arbitration agreement signed before the dispute cannot be enforced against a sexual harassment or sexual assault case if you choose court.

I signed an arbitration agreement when I was hired. Does that matter?+

Not for a sexual harassment case that arose on or after March 3, 2022. The date you signed is irrelevant. What matters is when the dispute arose or the claim accrued.

Do my retaliation and wrongful termination claims stay in court too?+

In California, yes. The Courts of Appeal have held that the law exempts the entire case, not only the harassment claims. That has included wage claims filed in the same case.

The harassment happened before March 2022. Am I covered?+

Possibly. If the harassment continued past that date, the claim accrues on the last act. And a dispute arises when the two sides actually disagree, which may be later than the conduct.

Who decides whether I have to arbitrate?+

A judge. The federal law says a court, not an arbitrator, decides whether it applies, even if the agreement gives that question to the arbitrator.

Can I still choose arbitration?+

Yes. The law gives the choice to the person alleging the conduct. Some people prefer arbitration for its privacy and speed.

Who pays for arbitration in California?+

The employer. For claims under the Fair Employment and Housing Act, an employee cannot be made to pay costs beyond what a court would charge. The employer must also pay the provider's fees on time.

Does the law cover sexual assault?+

Yes. It covers a sexual assault dispute, meaning one involving a nonconsensual sexual act or sexual contact, in the same way as a sexual harassment dispute.

Does it cover other claims, such as race discrimination on its own?+

No. The law applies to cases that relate to a sexual harassment or sexual assault dispute. Other claims brought without one remain subject to a valid arbitration agreement.

My employer wants me to sign an arbitration agreement after I complained. Should I?+

Not before a lawyer reads it. The federal law protects you from agreements made before the dispute. One signed afterward can be enforced.

Can a California employer require arbitration as a condition of the job?+

Yes. California passed a law against that practice, but a federal appeals court struck it down in 2023. The agreement still cannot be enforced against a sexual harassment case if you choose court.

Can a class action waiver stop a group harassment case?+

No. A waiver of joint, class or collective actions signed before the dispute cannot be enforced in a case relating to sexual harassment or sexual assault.

Find out where your case can be heard

Send us the agreement if you have it, or tell us what you remember signing. We will tell you whether it can be enforced and which forum suits your case. It is free and confidential.

(800) 371-3088 or send what you have.

Related reading: how settlements work, confidentiality in a harassment case, what a case is worth, what to expect at a deposition, whether you need a lawyer, the full California sexual harassment guide, whether you can sue for harassment, what California employers must do, and California sexual harassment laws.

Sources

  1. Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021, Public Law 117-90.
  2. Title 9, United States Code, section 401 (definitions) and section 402 (no validity or enforceability; a court decides).
  3. California Court of Appeal: Kader v. Southern California Medical Center, Inc. (2024) 99 Cal.App.5th 214; Doe v. Second Street Corp. (2024) 105 Cal.App.5th 552; Liu v. Miniso Depot CA, Inc. (2024) 105 Cal.App.5th 791; Casey v. Superior Court (2025) 108 Cal.App.5th 575.
  4. California Supreme Court: Armendariz v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83, minimum requirements; Ramirez v. Charter Communications, Inc. (2024) 16 Cal.5th 478, one-sided terms; Quach v. California Commerce Club, Inc. (2024) 16 Cal.5th 562, waiver; Hohenshelt v. Superior Court (2025), late payment of fees.
  5. California Code of Civil Procedure section 1281.98: payment of arbitration fees within 30 days.
  6. California Code of Civil Procedure section 1294: appeal from an order denying arbitration, with no automatic stay.
  7. California Labor Code section 432: the right to a copy of anything you signed.
  8. Chamber of Commerce v. Bonta (9th Cir. 2023) 62 F.4th 473: California's ban on mandatory arbitration agreements struck down.

Legal Disclaimer: This page is provided for general informational purposes only and does not constitute legal advice. Employment law is complex and fact-specific. The information on this page reflects California law as of 2026 and may change. If you believe your rights have been violated, please consult a licensed California employment attorney to evaluate your specific situation.

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