Case Explained: COMBS V. NETFLIX, INC.

Court: United States Court of Appeals for the Ninth Circuit

Filed: 2026-07-08

Docket: 2:24-cv-09037-

The Ninth Circuit affirmed the district court’s order granting Netflix, Inc.’s motion to compel arbitration in Jessica Combs’s diversity action alleging employment-related claims of sexual harassment and retaliation. The panel held that while the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) generally permits plaintiffs alleging sexual harassment to proceed in court despite predispute arbitration agreements, the EFAA applies only to disputes or claims that arise or accrue on or after its enactment date of March 3, 2022. In an issue of first impression for the circuit, the court interpreted the EFAA’s timing provision to distinguish between when a “claim accrues” and when a “dispute arises.” The panel held that a claim accrues when the plaintiff has a complete and present cause of action, whereas a dispute arises when an employee registers disagreement with their employer—through internal or external complaints—and the employer expressly or constructively opposes that position. Applying these standards to Combs’s allegations, the court found that her claims accrued between 2017 and 2021, and the dispute arose by December 2021 at the latest when Netflix allegedly fired her in retaliation for her internal complaints regarding a sexually charged work environment. Because both the accrual of the claims and the arising of the dispute occurred before the EFAA’s effective date, the statute did not override the parties’ arbitration agreement. Consequently, Combs’s claims must proceed to arbitration rather than litigation.

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