Ninth Circuit Rules Ex-Netflix Employee Must Arbitrate Sexual Harassment Case

The Ninth Circuit requires former Netflix employee Jessica Combs to arbitrate her sexual harassment claims.

On July 8, 2026, the Ninth Circuit Court of Appeals ruled that former Netflix employee Jessica Combs must arbitrate her sexual harassment claims against the company, reversing her attempt to bypass arbitration. The decision is a significant interpretation of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), which prohibits mandatory arbitration for sexual harassment disputes.

The court held that the EFAA, enacted on March 3, 2022, does not apply retroactively to disputes arising before its passage. Combs' allegations mainly involve conduct and termination occurring through December 2021, predating the law, which means her complaint must be resolved through the arbitration process she contractually agreed to during employment.

Combs claimed Netflix fostered a sexually charged work environment and retaliated by terminating her after she voiced concerns. She filed her lawsuit in July 2024, including claims of discrimination, retaliatory termination, and sexual harassment. Netflix moved to compel arbitration based on an agreement signed while Combs was employed, which the district court granted, prompting Combs' appeal.

The case illuminated divergent views about when a dispute arises in arbitration law. Netflix's counsel Ashley M. Farrell Pickett explained, "A dispute arises when there is real-world conflict. A claim accrues when there’s legal readiness." Meanwhile, Combs' counsel Michael C.P. Clark argued that "A dispute in cases like this arises once the party against whom the complaint is made, responds."

This ruling impacts employment law by reinforcing the enforceability of arbitration agreements signed before EFAA's enactment, affecting how sexual harassment claims can be brought and resolved in the Ninth Circuit's jurisdiction, which includes California.