Kader v. Southern Cal. Med. Ctr., Inc., 99 Cal. App. 5th 214 (2024)

The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (9 U.S.C. §§ 401, et seq.) became effective on March 3, 2022. A “statutory note” to the Act states that the “Act shall apply with respect to any dispute or claim that arises or accrues on or after the date of enactment of this Act.” Omar Kader worked as the CFO and then the COO of the employer, where he signed an arbitration agreement on June 25, 2019 by which he agreed to arbitrate “employment disputes.” Kader alleges he was subjected to multiple acts of sexual assault and harassment both before and after he signed the arbitration agreement though he did not file a complaint with the California Department of Fair Employment and Housing (DFEH) until May 2022. Defendants moved to compel arbitration on the ground that the alleged conduct began before Kader signed the arbitration agreement and, therefore, the “dispute” between the parties arose before the effective date of the Act. However, the trial court denied the motion to compel arbitration, and the Court of Appeal affirmed on the ground that “there was no evidence that Kader asserted any right, claim, or demand prior to filing charges with the DFEH in May 2022.”