Salesforce Wins Arbitration Ruling Against Former Executive

A former account executive for Salesforce must arbitrate her gender, age, and disability claims against the company after a U.S. magistrate judge determined that she did not plausibly allege sexual harassment under the Ending Forced Arbitration for Sexual Assault and Sexual Harassment Act (EFAA).

The EFAA was signed into law in March 2022 and prevents employers from requiring arbitration in cases involving sexual assault or sexual harassment allegations, even if employees signed such agreements before the law went into effect.

The plaintiff brought her lawsuit under several laws, including the Civil Rights Act of 1964, the Age Discrimination in Employment Act, and the Americans with Disabilities Act. However, the court found that none of her complaints, which included being treated poorly compared to male colleagues and being accused of false performance issues, amounted to sexual harassment.

The court evaluated the case under the New York City Human Rights Law (NYCHRL), which both parties agreed provided the most lenient and expansive definition of sexual harassment. However, the court found that previous cases had not established a precedent that all gender-based discrimination claims fall under the umbrella of sexual harassment.