Labor/Employment
Sep. 1, 2026
Another exit from arbitration, but how wide is the door?
The 9th Circuit's Ding decision allows employees who discover a viable sexual harassment claim after arbitration begins to invoke the EFAA and move their case to court, while limiting that option to circumstances where the claim was not previously known or withheld.
Andrew L. Satenberg
Partner
Manatt, Phelps & Phillips LLP
Employment and Labor Practice group
Phone: (310) 312-4312
Email: ASatenberg@manatt.com
New York Univ SOL; New York NY
Can an employee "elect" to arbitrate, litigate in that forum for months, and later invoke a statutory protection to move the action back into court? In Ding v. Structure Therapeutics, Inc., NASDAQ, No. 25-1532, 2026 WL 2420555 (9th Cir. Aug. 19, 2026), the 9th U.S. Circuit Court of Appeals answered in the affirmative, at least where the employee discovers the basis for a sexual harassment claim only after the arbitration has begun.
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