Avoiding Forced Arbitration Regarding Sexual Harassment Occurring Before the Effective Date of the New Law

Patricia Olivieri filed a lawsuit against her employer, Stifel, Nicolaus & Co., alleging gender-based discrimination, a hostile work environment, and retaliation in violation of Title VII and New York state law.

Stifel moved to compel arbitration based on the parties’ agreement, arguing that her claims accrued before the effective date of the law.

Olivieri countered that her hostile work environment claims fall under the continuing violation doctrine, meaning they accrued after the statute’s effective date.

The United States Court of Appeals for the Second Circuit sided with Olivieri. The court reasoned that some causes of action accrue serially and can reaccrue under the continuing violation doctrine. In Olivieri’s case, the conduct subsequent to the effective date of the act was part of a continuing sexual harassment allegations so the conduct prior to the effective date of the date occurred, in effect, after the effective date of the Act.

Olivieri v Stifel, Nicolaus & Company, No. 23-658-cv (United States Court of Appeal Second Circuit, August 12, 2024).