The panel affirmed the district court’s order granting Netflix, Inc.’s motion to compel arbitration in Jessica Combs’s diversity action alleging employment-related claims.
Combs alleged that between 2017 and 2021 she repeatedly complained to supervisors and management about Netflix’s sexually charged environment and specific instances of harassment, that Netflix ignored her complaints, and that she was fired in retaliation for submitting complaints.
The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) limits the Federal Arbitration Act’s reach as to claims involving sexual harassment or sexual assault, allowing plaintiffs making such allegations to proceed in court notwithstanding any predispute agreement to arbitrate. Included in the EFAA is a timing provision in a statutory note, which reads: “This Act, and the amendments made by this Act, shall apply with respect to any dispute or claim that arises or accrues on or after the date of enactment of this Act,” i.e., March 3, 2022. 9 U.S.C. § 401 note.
The panel held that Combs’s complaint alleged conduct constituting unlawful sexual harassment. Her claims therefore presumptively fell within the EFAA, and she could elect to proceed in court rather than through arbitration, if she met the EFAA’s timing provision.
Interpreting the EFAA’s timing provision as a matter of first impression, the panel held that the EFAA would apply either to “claims that accrue” or “disputes that arise” on or after March 3, 2022. The panel determined that a claim accrues under the EFAA when the plaintiff has a complete and present cause of action and that a dispute arises for purposes of the EFAA when an employee registers disagreement—through either an internal complaint, external complaint, or otherwise—with his or her employer, and the employer expressly or constructively opposes that position.
The panel held that by the allegations of Combs’s complaint, the dispute arose and claims accrued before the EFAA’s effective date of March 3, 2022. Because the EFAA does not apply, Combs’s claims must proceed to arbitration.
https://cdn.ca9.uscourts.gov/datastore/opinions/2026/07/08/25-3164.pdf
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