The Hedge Fund Law Report Publishes Akin Gump Analysis of Legislative Response to #MeToo Movement
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Richard Rabin and Rachel Wisotsky, partner and associate, respectively, in the labor and employment practice at Akin Gump, have written the article “What Fund Managers Need to Know About the Legislative Response to #MeToo,” published by The Hedge Fund Law Report. The article explores the various initiatives and legislation, both federal and state, recently enacted pertaining to sexual harassment. It also discusses the potential consequences for investment managers in the months and years ahead.
Some of the laws cited in the article include the following:
- A tax amendment eliminating business expense deductions for sexual harassment settlements that are subject to non-disclosure agreements, as part of last year’s Tax Cuts and Jobs Act
- A proposal to prohibit mandatory arbitration of sexual discrimination and harassment claims
- In New York:
- prohibitions on the mandatory arbitration of sexual harassment claims
- prohibition of confidentiality provisions in sexual harassment settlements
- mandatory sexual harassment policies and training
Looking ahead, Rabin and Wisotsky write that the #metoo movement “has ushered in an era of significant change in the laws surrounding sexual harassment in the workplace.” As a result, the legislative and regulatory landscape will likely continue to evolve at a rapid pace. Some states, the authors note, have imposed requirements that go beyond those imposed by federal law, meaning “firms will need to be proactive in charting their paths forward.”
Regardless of geography, Rabin and Wisotsky advise firms to expect “a heightened degree of scrutiny of workplace discrimination and harassment issues for the foreseeable future.” They should also look at the steps they are taking “to root out behaviors that can lead to such claims.” Most importantly, they add, “investment managers should be more attentive than ever to monitoring legislative and regulatory developments in this area and refining their approach accordingly.”
To read the full article, please click here.
