Employers love arbitration agreements. They keep disputes private and out of court. Unless, that is, sexual harassment is in the case. An Ohio appellate court just made that crystal clear in Hansbrough v. Marshall Dennehey. The employer did what ...
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Employers can no longer count on private arbitration when sexual harassment is on the docket

Employers love arbitration agreements. They keep disputes private and out of court.

Unless, that is, sexual harassment is in the case.

An Ohio appellate court just made that crystal clear in Hansbrough v. Marshall Dennehey.

The employer did what employers do. It pointed to a signed arbitration agreement and moved to compel arbitration of the employee's claims.

That used to be a strong move. Then Congress passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. That changed everything.

The question in Hansbrough wasn't whether the plaintiff would ultimately prove harassment. It was much earlier in the case: did the complaint plausibly allege sexual harassment occurring after March 3, 2022 (the EFAA's effective date)? The court said yes.

And under Ohio's notice-pleading standard, that was enough. Once the plaintiff cleared that low bar, the EFAA applied. And once the EFAA applied, the arbitration agreement could not be enforced—not just for the harassment claim, but for the entire case.

Read that again. Not just the harassment count. The entire case.

That's the real takeaway. This wasn't a merits decision. It was a procedural one. But procedural doesn't mean unimportant. It means the fight over where the case gets decided—court versus arbitration—may now turn on how a complaint is drafted.

The court didn't need to reach a harder question—whether post-EFAA retaliation tied to pre-EFAA harassment would independently trigger the statute. The plaintiff's allegations of post-EFAA harassment made that unnecessary.

But don't miss what this means in practice. Sexual harassment claims rarely travel alone. They come bundled with retaliation, discrimination, and other statutory claims. And under the EFAA, one viable harassment allegation may keep that entire bundle in court.

Arbitration agreements no longer operate as universal shields.

If your risk analysis assumes you can push most employment disputes behind closed doors, you need to revisit that assumption. In fact, one well-pleaded harassment claim may be all it takes to blow up arbitration entirely.

The Supreme Court lowered the bar. Employers should take notice.

Last year, in Muldrow v. City of St. Louis, SCOTUS rewrote what counts as an "adverse employment action" under Title VII. The old rule required something "materially" adverse—real harm. That's gone. Now, if an employee is left even a little worse off in the terms or conditions of employment, that's enough.

That's a big deal. It opens the door to challenges over everyday workplace decisions that courts used to dismiss as trivial.

But here's the nuance: the bar is lower—not nonexistent.

Enter Walsh v. HNTB Corp.

Walsh, a long-time IT employee, was placed on a performance improvement plan. She completed it. No demotion. No pay cut. She later resigned and claimed age discrimination, arguing that the PIP itself was an adverse action.

Under pre-Muldrow law, that claim was dead on arrival. Post-Muldrow? It at least gets a serious look.

The First Circuit acknowledged the new standard: any change that leaves an employee worse off in their job conditions can qualify. And importantly, it made clear that some PIPs will meet that test.

But Walsh still lost. Her PIP didn't actually change anything that mattered. No new duties. No reduced opportunities. No impact on pay, title, or advancement. The court called it what it was—"documented counseling."

That's the lesson. A PIP is no longer automatically safe. But it's not automatically actionable either. It depends on what it does.

A PIP can now be an adverse action if it:
📝 Adds worse or more burdensome responsibilities
📝 Limits promotion or transfer opportunities
📝 Impacts compensation or advancement
📝 Meaningfully alters how the job is performed

Walsh's PIP did none of these. So, the employer won.

But don't get too comfortable. Here's what employers should be doing right now:

First, draft PIPs like they'll be Exhibit A. Because they will be. Tie them to objective performance issues and avoid vague, subjective critiques.

Second, be careful about layering on consequences. The more a PIP changes how someone works—or what opportunities they have—the more it starts to look like an adverse action.

Third, stay consistent. Disparate treatment claims just got easier to plead and harder to dismiss early.

Fourth, train your managers. "It's just a PIP" is no longer a safe assumption.

Muldrow didn't take the bar away. But it dropped it. And Walsh shows how low employers now have to go to get under it.

The 3rd nominee for the Worst Employer of 2026 is … The Dead Baby

Some cases hit harder than others. This is one of them.

A Hamilton County, Ohio, jury just tagged Total Quality Logistics with a $22.5 million verdict. The reason? It refused to let a pregnant employee work from home—despite two doctors' orders—and her baby died as a result.

Let that sink in.

Chelsea Walsh had a high-risk pregnancy. After an emergency procedure, her doctor ordered modified bed rest and remote work. Not optional. Not a suggestion. A medical directive aimed at keeping her pregnancy viable.

She did what employees are supposed to do. She asked.

Her employer said no. Not once. Repeatedly.

Even after a second doctor confirmed that working from home was necessary to prevent further complications, the company held the line. Come into the office. Or don't work at all.

Only after a third party intervened did TQL finally relent and allow remote work. But it was too late. Later that same day, Walsh suffered complications and delivered her daughter, Magnolia, at 20 weeks. The baby lived only a few hours.

A jury heard those facts and concluded that this wasn't just bad judgment, it was negligence that cost a life.

TQL says it "disagrees with the verdict" and is "evaluating legal options." Of course it does. What else was it supposed to say after a jury called them out for an indefensible decision.

Here's the part employers need to understand: this wasn’t a close call.

A pregnant employee. A documented medical condition. Two doctors saying "work from home." And a job that could have been done remotely. This is textbook reasonable accommodation territory.

Instead, TQL chose rigidity over humanity, control over common sense, and policy over people.

And now it owns a $22.5 million reminder that those choices have consequences.

If you're an employer still treating accommodation requests like inconveniences to be managed instead of obligations to be met, pay attention. Juries are. Which makes this an easy call for the latest nominee for the Worst Employer of 2026.

Employers can't outsource discrimination to an algorithm

AI is new and shiny. Employment law is not.

Mobley v. Workday proves the point. The court concluded that employers don't get to outsource liability just because they've outsourced the tool to an AI vendor.

The plaintiffs, a nationwide class of job applicants over the age of 40, allege that employers' use of Workday’s AI-driven screening tools discriminates on the basis of age. Whether those claims ultimately stick is a question for another day. But the legal framework governing them is old, settled, and very familiar. Discrimination is discrimination—whether it's carried out by a hiring manager, a spreadsheet, or an outsourced algorithm.

What would have been surprising is the opposite outcome—if the court had said, "Not your problem, employer, your vendor did it." That's not how employment law works. It never has been.

If your hiring process produces a disparate impact, you own it. Full stop.

This case—and others like it percolating through the courts—should recalibrate how employers think about HR tech. AI doesn't create new legal obligations. It just exposes how seriously you're taking the ones that already exist.

So what should you be doing now?

Start with your contracts. If you're relying on a vendor's AI to source, screen, or rank candidates, you need to understand exactly how liability is allocated. Who is indemnifying whom? For what claims? With what caps and carveouts? "Trust us" is not a risk mitigation strategy.

Next, build audit rights into those agreements—and use them. You should have the contractual ability to test your vendor's tools for disparate impact and to obtain meaningful information about how those tools function. If you can't evaluate it, you shouldn't be using it.

Also, don't treat AI as a black box. You don't need to code it, but you do need to understand how it's trained, what data it relies on, and where bias might creep in. Speed and efficiency are great. Not at the expense of compliance.

Finally, own the outcomes. If a tool flags—or filters out—candidates, that's your hiring decision. Regulators and courts aren't going to draw a distinction between "human" and "machine-assisted" discrimination.

AI may be the new frontier. The rules governing it are not. Ignore that at your peril.

WIRTW #793: the 'Waterloo Sunset' edition

Last Friday in Covent Garden, a street performer pulled me into his act.

"Where are you from?"
"America."

The boos came right on cue. Not playful. Not ironic. Real boos. Not from everyone—but from enough to feel it.

And yes, I knew they were coming. Anyone paying attention to how the world currently sees the U.S. knows. Still, hearing it live hits differently. It stings. Because I hate being cast as the villain—especially when I oppose with every fiber of my being everything that America has become since January 20, 2025.

But in that moment, none of that mattered. I wasn't me. I was "America."

That's the point.

The rest of the world isn't parsing our politics the way we do. They're not distinguishing between voters and non-voters, between MAGA and anti-MAGA. They see the country. Full stop.

The passport does the talking—and right now, it's not saying anything flattering.

To be clear, that moment wasn't my overall experience. Over six days in London, everyone we met was warm, welcoming, and eager to talk. And when the conversation turned to U.S. politics, the reaction was universal: They hate Trump. Not politely. Not abstractly. Viscerally.

But here's the uncomfortable truth: even when people separate you from the politics in conversation, the reputation still sticks at a distance. Countries are judged by what their governments do. Period.

And when a nation elects leaders who attack democratic norms, cozy up to authoritarians, alienate allies, and uproot the world order without thought or care for the global consequences, the world doesn't carve out exceptions for those who voted the other way.

They just see the country. Which means we carry it—all of us.

That's frustrating. It's unfair. It's also reality.

For a long time, Americans treated politics as a domestic sport. Something that affected us internally. Not anymore. The damage is global. And it shows up in small, uncomfortable moments—like a crowd booing when you say where you're from.

That moment wasn't about me. It couldn't have been. They didn't know me. All they knew was that I'm American—and that alone was enough, because their reaction was about what "America" currently represents.

Reputations aren't permanent. They're earned. They can be lost. And, with hard work, they can be regained. If we don't like how the world sees us right now, there's only one way to change it. We don't get to shrug it off. We don't get to pretend it's not our problem. It is our problem. And it's time we started fixing it.

* * *

To hear a full recap of our Spring Break (or Spreak, as my daughter calls it) adventure in London, tune into this week's episode of The Norah and Dad Show, available via Apple Podcasts, Spotify, YouTube, Amazon Music, Overcast, your browser, and everywhere else you get your podcasts.



Here's what I read this week that you should read, too.




Target, Boycotts, and Diversity — via The Chief Organizer Blog


Our Favorite Management Tips on Leading with AI and AI and the Entry-Level Job — via Harvard Business Review






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