The Financial Industry Regulatory Authority has filed rule changes that would end forced arbitration of sexual assault and sexual harassment complaints as of June 1. The FINRA rule changes were required by the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, which was signed into law in March. It gives employees the right to take their sexual harassment claims to court. The federal law amends the Federal Arbitration Act (FAA) by allowing employees who were previously subject to mandatory arbitration agreements to pursue their claims of sexual assault or harassment in court. The FINRA rule change aligns the FINRA Code of Arbitration Procedure with the federal law changes.
The proposed rule changes can be found here.
Winget, Spadafora & Schwartzberg, LLP is closely monitoring these developments. Any questions can be directed to our Securities Litigation Practice Group at (212) 221-6900.
