Though the Ending Forced Arbitration of Sexual Harassment Act (EFAA) was passed in 2022, there are still instances where companies try to keep sexual harassment and abuse claims out of court. In a recent case, Chipotle Mexican Grill attempted to compel arbitration because the alleged mistreatment occurred prior to the date when the law was enacted, even though the case was filed after it was in place. However, the U.S. Court of Appeals for the Eighth Circuit did not buy this reasoning. 

The decision in Famuyide v. Chipotle Mexican Grill Inc. confirms the strength of the EFAA and clarifies when a claim is deemed to have arisen under the law. Statutory language states that workers only receive EFAA protection for cases that accrued on or after March 3, 2022. Though Ms. Famuyide filed her lawsuit on July 26, 2022 in a Minnesota court, the restaurant chain argued that her claim actually accrued on one of these three dates outside the statutory period:

• November 2021 — When the alleged sexual harassment occurred

• February 2022 — When the claimant’s lawyer wrote a letter asking Chipotle to preserve relevant information relating to the incident and requesting documents from her personnel file 

• March 1, 2022 — When the claimant’s lawyer sent a second letter to Chipotle

Upholding the District Court’s decision, the Eighth Circuit ruled that the alleged incident and exploratory communications from counsel did not give rise to a claim as defined by the EFAA. Accordingly, Chipotle was prohibited from forcing the plaintiff to arbitrate her sexual harassment complaint given that July 26, 2022 is within the statutory timeframe. 

While this ruling could be crucial to employees who faced mistreatment over a long period of time, it also highlights the fact that some employers are still trying to challenge the EFAA or attempt to find loopholes in the law. Additionally, many employees may still be unaware of their rights or hesitant to come forward. Even if you might have been subject to a mandatory arbitration clause in the past, you now have the ability to take your sexual harassment or sexual abuse case to court. 

Kardell Law Group is dedicated to giving victims of workplace sexual harassment and abuse the comprehensive legal support they need to secure the compensatory relief they deserve. If you’ve been mistreated in this manner, we’ll review the facts of your case, advise you of your rights under the EFAA and other applicable laws and press for an appropriate resolution.