Sixth Circuit Addresses Arbitrability of Individual Claims in Sexual Assault and Harassment Claims (US)

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Why it matters

The U.S. Court of Appeals for the Sixth Circuit ruled on February 25, 2026, in Bruce v. Adams and Reese, LLP that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) renders pre-dispute arbitration agreements unenforceable for an entire lawsuit if it includes a plausible sexual harassment claim, even if other claims (like disability discrimination) are unrelated and otherwise arbitrable.[1][2][3] The court affirmed a Tennessee district court's denial of the employer's motions to dismiss the harassment claim and compel arbitration of the plaintiff's Americans with Disabilities Act (ADA) claims, finding the complaint plausibly alleged a Title VII hostile work environment.[1][2][5] In a 2-1 decision, the majority emphasized EFAA's use of "case" (not "claim"), interpreting it to cover all causes of action in the suit to avoid bifurcation.[2][3][4]

Key parties include plaintiff Lauren Bruce, a former employee; defendant Adams and Reese, LLP, a law firm; the Sixth Circuit (covering Kentucky, Michigan, Ohio, Tennessee); and the EFAA (2021 federal law amending the Federal Arbitration Act to exempt sexual assault/harassment disputes from mandatory arbitration).[1][3][4][5] Bruce alleged sexual harassment and disability discrimination/failure to accommodate; the firm sought to arbitrate the latter.[1][2]

This stems from the 2021 EFAA, enacted amid #MeToo to allow court litigation of harassment claims, with lower courts (e.g., New York, D.C.) already adopting the "entire case" view; the Sixth Circuit provided the first appellate precedent of first impression.[3][4][5] The case will now proceed to discovery in court.[3]

Newsworthy as the first binding appellate ruling post-EFAA, it forces Sixth Circuit employers to litigate all claims alongside viable harassment allegations—despite arbitration agreements—potentially influencing other circuits or Supreme Court review, and prompting policy reviews amid arbitration's favor in employment disputes.[1][2][3][4]

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