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Pre-dispute Agreements to Arbitrate Sexual Harassment and Sexual Assault Claims Will Be Voidable Pursuant to Federal Legislation

Client Alert | 1 min read | 03.02.22

On February 10, 2022, Congress passed H.R. 4445, titled the “Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021.” The legislation would amend the Federal Arbitration Act (FAA) to render pre-dispute employment arbitration agreements voidable at the election of the employee for all sexual harassment and sexual assault claims. Employees will still be permitted to choose to arbitrate these claims. The legislation would also render pre-dispute employee waivers of the right to bring such claims jointly or on a class basis voidable.

Courts—not arbitrators—decide under federal law whether a claim constitutes sexual harassment or sexual assault subject to H.R. 4445, even if the arbitration agreement includes a provision delegating these decisions to the arbitrator. The law will apply to any sexual harassment or sexual assault claim that arises on or after its date of enactment.

While H.R. 4445 currently awaits President Biden’s signature, there is little doubt that he will sign it. On February 1, 2022, President Biden issued a Statement of Administration Policy encouraging the passage of the bill. In anticipation of the enactment of this law, employers should review and evaluate their current policies concerning the enforcement of employment arbitration agreements to make sure such agreements are not enforced with respect to claims exempt from mandatory arbitration under federal law. Additionally, for new employee arbitration agreements, employers should consider adding a specific carve-out for sexual harassment and sexual assault claims.

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Client Alert | 6 min read | 03.26.24

California Office of Health Care Affordability Notice Requirement for Material Change Transactions Closing on or After April 1, 2024

Starting next week, on April 1st, health care entities in California closing “material change transactions” will be required to notify California’s new Office of Health Care Affordability (“OHCA”) and potentially undergo an extensive review process prior to closing. The new review process will impact a broad range of providers, payers, delivery systems, and pharmacy benefit managers with either a current California footprint or a plan to expand into the California market. While health care service plans in California are already subject to an extensive transaction approval process by the Department of Managed Health Care, other health care entities in California have not been required to file notices of transactions historically, and so the notice requirement will have a significant impact on how health care entities need to structure and close deals in California, and the timing on which closing is permitted to occur....