How Arbitration Agreements Affect Sexual Harassment Claims in California

For many employees, workplace contracts include pages of fine print that often go unread. Tucked into that fine print, many employees discover arbitration agreements (clauses) requiring workplace disputes to be settled privately instead of in court. When it comes to sexual harassment claims, these agreements can have a major impact on how survivors pursue justice.

At Betts Law Group, we believe survivors should understand their options before signing or challenging an arbitration clause. Here’s what you should know about how these agreements work in California and how they can affect your rights.

What Is an Arbitration Agreement?

An arbitration agreement is a clause in an employment contract that requires disputes between an employee and employer to be resolved through private arbitration rather than in a public courtroom. This process takes place before a neutral third party called an arbitrator, not a judge or jury.

While arbitration is often presented as faster or less costly, it usually benefits the employer. Arbitration proceedings are private, and the decisions are typically final, meaning survivors lose their right to appeal or publicly hold the employer accountable.

Can Sexual Harassment Claims Be Forced Into Arbitration?

In the past, many survivors were forced into arbitration because of these contracts, which effectively silenced them and kept misconduct out of public view. However, California and federal law have recently changed to offer greater protection.

Under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, employees who experience sexual harassment or assault now have the choice to pursue their claim in court even if they signed an arbitration agreement.

This federal law applies nationwide and gives survivors the right to make their claims public, allowing for greater transparency and accountability.

Why Arbitration Can Be Problematic for Survivors

Even though the law now gives employees more control, arbitration clauses can still cause confusion and delay. Survivors may feel pressured not to speak up, or they may think their case can only be handled in private.

Arbitration often:

• Limits access to discovery and evidence that might strengthen a case
• Keeps the outcome confidential, preventing other victims from learning about misconduct
• Favors repeat employers who regularly use arbitration services
• Restricts a survivor’s right to appeal unfair decisions

This lack of transparency can discourage reporting and make it harder to expose systemic workplace harassment.

California’s Worker Protections

California already has strong worker protection laws under the Fair Employment and Housing Act (FEHA), which prohibits harassment and retaliation based on sex, gender, or other protected categories.

Even when arbitration is part of a contract, California courts carefully review whether it is enforceable, especially in cases involving sexual harassment or discrimination. Some agreements may be invalid if they are overly broad, coercive, or violate public policy.

Survivors still have the right to file a complaint with the California Civil Rights Department or the Equal Employment Opportunity Commission (EEOC), regardless of arbitration language in their contracts.

What to Do If You Signed an Arbitration Agreement

If you believe you have a valid sexual harassment claim but signed an arbitration agreement, you still have options. You can:

• Review your agreement with an experienced attorney to determine if it is enforceable
• Decide whether to move forward in court under the federal arbitration exemption
• File a complaint with state or federal agencies while your case is being reviewed
• Gather evidence and witness statements while preserving your rights

Many arbitration agreements are written to favor the employer, but that doesn’t mean they are always valid.

Taking the Next Step

For survivors, understanding these agreements is the first step toward reclaiming control. Arbitration may be written into a contract, but it cannot erase your rights under state and federal law.

If you experienced sexual harassment and are unsure whether an arbitration clause applies to you, Betts Law Group can help you review your contract, explain your legal options, and guide you toward a resolution that prioritizes your safety and voice.

You deserve clarity, protection, and a team that stands beside you every step of the way.

Frequently Asked Questions About Arbitration Agreements Affecting Sexual Harassment Claims in California

1. What is forced arbitration?
   Forced arbitration is when an employer requires employees to handle disputes privately, instead of going to court. It often limits transparency and the survivor’s right to appeal.
2. Can I still sue my employer if I signed an arbitration agreement?
   Yes. Under federal law, employees who experience sexual harassment or assault can choose to go to court, even if they previously agreed to arbitration.
3. Does California law protect against forced arbitration?
   Yes. California has additional worker protections, and courts frequently strike down arbitration clauses that are unfair or violate public policy.
4. What if my employer retaliates after I report harassment?
   Retaliation is illegal under the Fair Employment and Housing Act. You may be entitled to compensation for lost wages and emotional distress.
5. Should I talk to an attorney before signing an employment contract?
   Absolutely. An attorney can review the agreement, explain any arbitration clauses, and help you understand how they may affect your rights in the future.