State Progress on #MeToo Runs Into Federal Arbitration Wall

Aug. 6, 2019, 11:27 AM

The #MeToo movement inspired several states to try to limit arbitration in cases involving sexual harassment. The Federal Arbitration Act, however, could render those effects toothless. A former Morgan Stanley associate now hopes the Second Circuit will step in to say his case can proceed in court rather than in private arbitration.

Limiting Arbitration: There have been 19 proposed laws related to arbitration—often specifically related to blocking the practice in cases of sexual harassment—across 15 states in the past two years, according to a Bloomberg Law analysis. Some four states, including New York, currently have laws in effect.

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