Federal Sex Assault Arbitration Ban Broadly Applied by NJ Court

December 26, 2025, 6:47 PM UTC

A New Jersey appellate court on Friday ruled that federal law prohibits arbitration for entire cases related to sexual harassment.

The ruling marks the first time the New Jersey Superior Court Appellate Division has weighed in on the scope of the Ending Forced Arbitration of Sexual Assault and Harassment Act of 2021, which rendered invalid any pre-dispute arbitration agreement when it comes to cases of sexual assault or harassment.

Judges reversed lower court orders in two separate cases compelling plaintiffs Megan McDermott and Geraldine Rivera-Santana to arbitrate certain labor, contract, and discrimination claims against their former employers, while allowing sexual ...

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