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April 18, 2022

Arbitration Remains an Option in Sexual-Harassment Cases

Society of Human Resource Management

Following the passage of a recent law banning the enforcement of pre-dispute pacts for sexual-harassment and sexual-assault claims, arbitration instead of litigation remains an option.

Robert Sheridan, partner at Nelson Mullins, explained in an interview with the Society of Human Resource Management that while a lawsuit is public, arbitration is private, which is why many employees prefer to handle harassment claims in arbitration.

"Emotional claims with difficult subject matter create concerns of embarrassment, morale issues among employees, and other business disruptions, even where a defendant or organization is later vindicated," he said. "In the current environment, the reputational risk of fighting even a frivolous claim in court may be too much for an employer to bear."