Ex-New Start Workers in Wage, Harassment Suit Avoid Arbitration

A federal law barring the enforcement of arbitration agreements in cases brought by alleged victims of workplace sexual harassment only applies to plaintiffs who assert claims tied to such conduct, a federal judge said.

But because three of the plaintiffs in a lawsuit against New Start Capital LLC assert claims tied to a single employee’s sexual harassment allegations, their claims can proceed in court, Judge Gregory H. Woods of the US District Court for the Southern District of New York said in a Thursday opinion.

Former sales representatives at New Start sued the company and several executives last year, ...