FINRA Proposed Rule Ends Mandatory Arbitration of Sexual Harassment and Sexual Assault Claims

FINRA has proposed a change to the Code of Arbitration Procedure to give employees the right to take sexual harassment and sexual assault claims directly to court instead of arbitrating these disputes.

This change aligns the Code of Arbitration Procedure with the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act signed into law in March 2022.

The proposed rule will take effective the day it was proposed, May 13, 2022 assuming the Securities and Exchange Commission waives the 30-day delay requirement.