Introduction

Imagine finding yourself in a workplace where the lines of professionalism are constantly crossed, where inappropriate comments and unwanted advances become a part of your daily routine. You want to speak up, but there’s something holding you back—a forced arbitration clause in your employment contract that seems to trap you in silence, preventing you from taking your claims to court.

For years, employees in situations like this felt powerless, their voices stifled by these clauses that favored employers. But then, in 2021, a significant change came with the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“EFAA”). This law was designed to give employees a way out, allowing them to bypass these restrictive agreements and bring their cases directly to court.

But what happens when the harassment started before this law was passed? Does the protection still apply? The Second Circuit Court of Appeals recently addressed this very question in a case that could have far-reaching implications for anyone considering legal action against their employer for ongoing harassment.

In this blog post, we’ll explore the court’s decision, focusing on how it applied the new law to a situation where the harassment began before, but continued after, the EFAA was enacted. We’ll break down what this means for employees like you—those who might be facing a hostile work environment but are unsure if they can still pursue their claims in court.

This recent ruling is not just a legal milestone; it’s a beacon of hope for many who have been enduring workplace harassment in silence. Let’s dive into what this decision means and how it could impact your rights in the workplace.

Key Points of the Decision

Background of the Case

Patricia Olivieri, a Client Services Associate at Stifel, Nicolaus & Company, Inc., faced a workplace environment that became increasingly hostile after she reported sexual harassment by her manager, Neil Isler. What began as inappropriate comments soon escalated into a pattern of harassment that included unwanted physical contact and discussions of graphic sexual topics. Despite her efforts to report these behaviors, Olivieri was met with retaliation from her employer, including a reduction in her job responsibilities and a transfer to a less desirable position.

Initially, Olivieri’s claims were sent to arbitration due to a clause in her employment contract. However, in 2021, Congress passed the EFAA, which offered new protections to employees like Olivieri. This law allows individuals to opt out of arbitration agreements in cases involving sexual harassment or assault, giving them the right to take their cases to court.

EFAA’s Impact

The EFAA, which became effective on March 3, 2022, was designed to address a critical gap in employee rights. Before this law, many employees found themselves bound by arbitration clauses that effectively silenced their complaints, forcing them to resolve disputes in private, employer-friendly settings rather than in open court. The EFAA changes that dynamic by making these arbitration agreements voidable at the election of the employee when it comes to cases of sexual harassment or assault.

In Olivieri’s case, the key question was whether this new law applied, given that the harassment began before the EFAA was enacted but continued afterward. The court had to consider whether the law’s protections could be extended to cover ongoing situations that straddled the line between the pre- and post-EFAA periods.

Court’s Reasoning

The Second Circuit Court of Appeals affirmed the district court’s decision that the EFAA did apply to Olivieri’s case. The court relied on the “continuing violation doctrine,” a legal principle that allows ongoing conduct to be treated as a continuous act, rather than as a series of separate incidents. This doctrine was crucial in determining that Olivieri’s hostile work environment claims were still accruing after the EFAA’s effective date, as the harassment and retaliation she faced continued beyond March 3, 2022.

Because the harassment was ongoing, the court ruled that Olivieri’s arbitration agreement was invalid and unenforceable under the EFAA. This decision means that Olivieri could pursue her claims in court, despite the initial arbitration clause, because the continued harassment occurred during a time when the EFAA was in effect.

Broader Implications

This decision by the Second Circuit sets a powerful precedent for future cases involving the EFAA. It suggests that employees who have experienced ongoing harassment or retaliation that began before, but continued after, the EFAA’s enactment, can still benefit from the law’s protections. This ruling not only reinforces the importance of the EFAA but also expands its reach, providing more opportunities for employees to seek justice in court rather than being confined to arbitration.

For employees facing similar situations, this decision highlights the importance of understanding how ongoing harassment claims might be treated under the law. It underscores the potential for the EFAA to offer protection, even in cases where the harassment began before the law was passed, as long as the conduct continued into the period covered by the Act.

Conclusion

The Second Circuit Court of Appeals’ recent decision is a significant step forward for employees seeking justice in cases of workplace harassment and retaliation. By applying the EFAA to a situation where the harassment began before, but continued after, the law’s enactment, the court has expanded the scope of protection available to workers.

In this case, the court’s reliance on the continuing violation doctrine was crucial. It allowed the court to view Olivieri’s claims as ongoing, making her eligible for the protections offered by the EFAA. This means that even if your experiences with harassment started before March 3, 2022, you might still be able to void an arbitration agreement and bring your case to court, provided the harassment or retaliation continued after that date.

This decision is more than just a legal victory; it’s a message to employees everywhere that the law recognizes the complex and ongoing nature of workplace harassment. You no longer have to feel trapped by arbitration clauses that seem to favor your employer—there is a path forward, and the courts are ready to enforce it.

If you’re facing a hostile work environment and are considering legal action, this ruling is a reminder that there are strong legal protections in place to support you. Understanding how these laws apply to your situation can be the key to successfully pursuing your claims and holding your employer accountable for their actions. Don’t hesitate to seek legal advice to explore your options under the EFAA and ensure your rights are fully protected.

To schedule a free consultation and to learn more about your legal rights, call us at (727) 335-1030.