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Employment ComplianceOct 30, 202610:02 (PT)

New York federal court rules nonsexual gender-based conduct can be sexual harassment exempt from arbitration

Key points

  • The court found nonsexual, gender-based hostile treatment can plausibly constitute sexual harassment
  • The court denied the employer's motion to compel arbitration in Elshabrowy v. Ali Awad Law, P.C.
  • Under the federal EFAA, sexual harassment disputes cannot be forced into arbitration

On October 20, 2026, the U.S. District Court for the Eastern District of New York adopted a magistrate judge's ruling that an employee's allegations of nonsexual, gender-based hostile treatment plausibly constitute sexual harassment under the NYSHRL and NYCHRL. In Elshabrowy v. Ali Awad Law, P.C., it denied the employer's motion to compel arbitration, as the case qualifies as a sexual harassment dispute under the federal EFAA.

What employers should do

  1. Review arbitration clauses in employee agreements for their application to sexual harassment claims
  2. Review how gender-related complaints are investigated, including nonsexual hostile conduct

Policy details

Jurisdiction
New York
Status
Court ruling
Effective date
—
Employers covered
Employers subject to the EFAA and the NYSHRL or NYCHRL
Official source
Official source pending
Original report: Ogletree ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.