Discovery of Sex-Based Discrimination Invalidates Arbitration Agreement

In 2021, Congress passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), which allows victims of workplace sexual harassment and assault to invalidate mandatory arbitration agreements and pursue claims against their employers in court.

Recently, the Ninth Circuit Court of Appeals court held that an employee does not waive the protections of the EFAA simply by initiating arbitration before uncovering evidence of sex-based discrimination (Ding v. Structure Therapeutics, Inc., No. 25-1532 (9th Cir. Aug. 19, 2026)). This case highlights employers' legal vulnerability when adverse personnel decisions rely on gender stereotyping and third-party bias.