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ARTICLE · 20 OCTOBER 2026

Second Circuit Holds EFAA Invalidates Arbitration Agreements For All Claims In Cases Involving Sexual Harassment

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The U.S. Court of Appeals for the Second Circuit addresses a critical question about the scope of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021: does the statute invalidate arbitration agreements for individual claims or entire lawsuits? This decision resolves whether employees alleging sexual harassment can bring all their claims to court, including those unrelated to harassment, when a pre-dispute arbitration agreement exists.

United StatesLitigation, Mediation & Arbitration
Gabrielle Levin
Gabrielle Levin
Emily F. Murphy
Emily F. Murphy
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Decision Alert: Diaz-Roa v. Hermes Law, P.C., No. 24-3223-CV, 2026 WL 2931801 (2d Cir. Sept. 30, 2026)

Introduction

On September 30, 2026, the U.S. Court of Appeals for the Second Circuit issued its opinion in Diaz-Roa v. Hermes Law, P.C., No. 24-3223-CV, 2026 WL 2931801 (2d Cir. Sept. 30, 2026), addressing for the first time the interpretation of the term “case” under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (“EFAA”). The Second Circuit held that “when it is applicable, the EFAA enables a plaintiff to invalidate a pre-dispute arbitration agreement as to the entire lawsuit, rather than only the sexual harassment or sexual assault claims contained within that lawsuit.”

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