Chipotle Loses Appeal Over Arbitration in Worker’s Assault Case

Chipotle Mexican Grill Inc. can’t enforce an arbitration agreement with regard to an employee’s sexual harassment and assault claims after the Eighth Circuit held on Monday that a 2022 law applies.

A lower court correctly decided that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act applied to the former Rochester, Minn., employee’s suit against Chipotle and Chipotle Services LLC, a unanimous three-judge panel said. The law allows workers to opt out of arbitration when their sexual assault or sexual harassment claims arise after the law’s March 3, 2022, effective date.

The ruling clarifies when arbitration can possibly ...