Combs v. Netflix, Inc. – Do It For The Caselaw

Holding: The court affirmed the district court's order compelling arbitration because the dispute arose and claims accrued before the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act became effective.
Standard: EFAA timing provision interpretation
Vote: Affirmed by a panel of three judges.
Practical effect: Employers may enforce arbitration agreements for sexual harassment claims if the employee's complaints and the employer's response occurred before March third, twenty twenty two.

The Ninth Circuit affirmed a district court order compelling arbitration in an employment dispute involving sexual harassment allegations. The court held that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act does not apply because the dispute arose before the statute's effective date.

Background

Jessica Combs worked at Netflix from May twenty seventeen until December twenty twenty one. She alleged a sexually charged work environment, sexual harassment, and retaliation for complaining about the conditions. Netflix terminated her in December twenty twenty one. Combs filed a complaint in California state court in July twenty twenty four, which Netflix removed to federal court and moved to compel arbitration based on an employment agreement clause.

The court’s reasoning

The panel interpreted the timing provision of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act for the first time in this circuit. The court held that a claim accrues when the plaintiff has a complete and present cause of action. A dispute arises when an employee registers disagreement with an employer and the employer expressly or constructively opposes that position. The court found that Combs’s repeated complaints and Netflix’s failure to act, culminating in her termination in December twenty twenty one, established a dispute before the Act’s March third, twenty twenty two effective date.

What it means going forward

Employers may enforce arbitration agreements for sexual harassment claims if the employee’s complaints and the employer’s response occurred before March third, twenty twenty two.