How Federal Law Limits Rideshare Arbitration Clauses
Rideshare terms of service typically include an arbitration clause. Federal law gives a sexual assault survivor a way around it, if the survivor chooses to use it.
The statute's own definitions frame the rule. Under 9 U.S.C. § 401, a predispute arbitration agreement means "any agreement to arbitrate a dispute that had not yet arisen at the time of the making of the agreement." In plain words, it is a promise to arbitrate made before anything went wrong, such as accepting app terms before a first ride. The same section defines a "sexual assault dispute" as "a dispute involving a nonconsensual sexual act or sexual contact, as such terms are defined in section 2246 of title 18 or similar applicable Tribal or State law, including when the victim lacks capacity to consent."
The core rule is in 9 U.S.C. § 402(a): "Notwithstanding any other provision of this title, at the election of the person alleging conduct constituting a sexual harassment dispute or sexual assault dispute, or the named representative of a class or in a collective action alleging such conduct, no predispute arbitration agreement or predispute joint-action waiver shall be valid or enforceable with respect to a case which is filed under Federal, Tribal, or State law and relates to the sexual assault dispute or the sexual harassment dispute."
The key words are "at the election of the person alleging" the conduct. The statute does not force anyone into court. It takes away the other side's ability to force arbitration when the survivor elects court. The choice is the survivor's.
Subsection (b) adds that whether the chapter applies "shall be determined under Federal law," and that a court, "rather than an arbitrator," decides whether the agreement can be enforced, even if the contract tries to hand that question to an arbitrator.
None of this says any rideshare company did anything wrong. It describes what a contract clause can and cannot do in this kind of dispute.