Compliance Stuff

On February 25, 2026, the U.S. Court of Appeals for the Sixth Circuit  ruled  in  Bruce v. Adams and Reese, LLP  that employers cannot compel arbitration of a case under a mandatory pre-dispute arbitration agreement when an employee or former employee sues on multiple claims and at least one of them is for sexual assault and/or sexual harassment. Under the  Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) , mandatory pre-dispute arbitration agreements are invalid with respect to sexual assault or sexual harassment disputes. 0:00 6:57 Quick Hits In  Bruce v. Adams and Reese ,  LLP , a former employee sued a law firm for disability discrimination, retaliation, sexual harassment, and hostile work environment. The Sixth Circuit recently concluded that a mandatory pre-dispute arbitration agreement is voidable when a plaintiff brings multiple claims in a case that includes sexual harassment and/or sexual assault. This is ...

In a significant broadening of vicarious liability for employers, the American Law Institute (ALI) recently approved a “Special Rule on Vicarious Liability for Sexual Assault” as part of the Third Restatement of Torts: Miscellaneous Provisions. This marks a notable deviation from the traditional imposition of vicarious liability on employers by imposing liability “even when the employee was not acting with a motive to serve the employer’s interest.” However, ALI has drafted this special rule with “significant guardrails” meant to temper the burden placed on employers. Quick Hits Recent case law has indicated a gradual shift toward holding employers liable for employees’ sexual misconduct. To expand this liability for employers while acknowledging the risk of creating too much liability, the rule only applies to sexual assault that meets specific criteria, including only applying in circumstances where the victim is “particularly vulnerable.” This rule only applies to employer-employee ...

  Following this year’s Texas legislative session, two bills are set to go into effect in Texas related to the use of nondisclosure and confidentiality agreements for claims of sexual assault and artificial intelligence (AI). Quick Hits Texas Senate Bill 835, effective September 1, 2025, voids any nondisclosure or confidentiality provisions in agreements that prohibit the disclosure of sexual abuse or assault, applying retroactively unless a court order permits nondisclosure. Texas House Bill 149, known as TRAIGA 2.0, effective January 1, 2026, establishes a regulatory framework for AI systems in Texas, including oversight mechanisms, ethical standards, and prohibitions against discriminatory AI practices by employers. Nondisclosure and Confidentiality Provisions for Sexual Assault Claims Senate Bill 835  renders void and unenforceable any nondisclosure or confidentiality provision in an agreement—including settlement agreements—to the extent the provision prohibits the disclo...