New California Sexual Harassment Decisions Strengthen Employees’ Access to Court
Recent published California appellate decisions have strengthened important procedural protections for employees alleging workplace sexual harassment. The decisions address two questions that can significantly affect a case: whether harassment based on sexual orientation qualifies as sexual harassment and whether a predispute arbitration agreement can prevent the employee from pursuing the case in court.
The decisions did not award monetary damages. They arose at an earlier procedural stage, when the employers sought to compel arbitration. The appellate courts affirmed orders allowing the employees’ cases to remain in court, where the underlying claims and any potential damages remained to be decided.
Decloedt v. Radnet Management: Sexual-Orientation Harassment Can Constitute Sexual Harassment
In Decloedt v. Radnet Management, B343963 (Cal. App. June 26, 2026), certified for publication July 7, 2026, the plaintiff alleged that a coworker repeatedly criticized his sexual orientation, made threatening statements, pulled or touched his hair, and engaged in other unwanted conduct. He also alleged that he reported the conduct but corrective action was not taken.
The employer sought to enforce an arbitration agreement that the employee had signed when his employment began. The trial court denied the motion, and the Court of Appeal affirmed.
The published appellate decision held:
- Harassment based on sexual orientation is a form of sexual harassment under California’s Fair Employment and Housing Act; and
- The allegations sufficiently described severe or pervasive harassment to bring the dispute within the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021.
The court therefore allowed the employee to pursue his claims in court instead of requiring private arbitration.
How Much Was Awarded in Decloedt?
No damages were awarded in the appellate decision. The appeal concerned only whether the case had to proceed in arbitration. The court affirmed the denial of the employer’s motion to compel arbitration and awarded the plaintiff his recoverable appellate costs. It did not decide liability or fix any monetary compensation for the alleged harassment, retaliation, termination, or emotional harm.
Quilala v. Securitas: A Sexual-Harassment Dispute May Keep the Entire Case Out of Arbitration
In Quilala v. Securitas Security Services USA, Inc., A172017, 340 Cal. Rptr. 3d 89 (Cal. App. Dec. 16, 2025), the employee alleged that supervisors and coworkers questioned his sexual identity, made intrusive and demeaning comments, mocked his perceived sexual orientation, reduced his hours, and removed him from an assignment. He further alleged that he was criticized after objecting in writing and was later terminated.
The Court of Appeal affirmed the denial of the employer’s motion to compel arbitration. It held that:
- The allegations stated a plausible sexual-harassment claim under California law;
- Filing the case in court and opposing arbitration adequately demonstrated the employee’s election to proceed in court—the employee did not have to expressly cite the federal statute;
- Courts must determine whether the federal Ending Forced Arbitration Act applies; and
- When the Act applies, the predispute arbitration agreement may be unenforceable as to the entire case, not merely the sexual-harassment cause of action.
How Much Was Awarded in Quilala?
No monetary damages were awarded in the appellate decision. The court decided the forum in which the dispute could proceed, not whether the employee ultimately proved his claims. It affirmed the order denying arbitration and allowed the employee to recover his appellate costs. Any damages would have to be determined later through settlement, trial, or another final resolution.
Why These Decisions Matter
Arbitration agreements are common in California employment documents. Arbitration is generally private and usually does not involve a jury. The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act, effective for covered disputes arising on or after March 3, 2022, gives a person alleging a qualifying sexual-assault or sexual-harassment dispute the option to reject enforcement of a predispute arbitration agreement.
These decisions reinforce that:
- Sexual harassment is not limited to heterosexual advances or conduct motivated by sexual desire;
- Harassment based on actual or perceived sexual orientation may qualify under California law;
- An employee may be able to choose court even after signing a predispute arbitration agreement; and
- A qualifying sexual-harassment dispute may keep the employee’s entire related case in court.
Whether the federal law applies is fact-specific. The timing of the alleged conduct, the sufficiency of the sexual-harassment allegations, the scope of the case, and the employee’s election can all matter.
A California Sexual-Harassment Judgment With an Award
In Ramirez v. Bala, H049689, H049702 & H050113 (Cal. App. July 1, 2025), a jury found for employee Anahi Ramirez on FEHA claims arising from the circulation of a private sexual video among prison employees. The jury awarded $709,555—$59,555 in economic damages and $650,000 for mental suffering and emotional distress. With attorneys’ fees, expert fees, and costs, the amended judgment totaled $2,095,101.29, plus interest. The Court of Appeal affirmed the judgments. The appellate opinion is unpublished and therefore generally may not be cited as precedent, but it provides a verified example of an affirmed monetary award.
What Compensation May Be Available in a Sexual-Harassment Case?
Although Decloedt and Quilala did not award damages, a successful employee in a different case may be eligible for remedies depending on the pleaded claims, evidence, responsible parties, and proven harm. Potential remedies may include:
- Lost wages and employment benefits;
- Reinstatement or other appropriate workplace relief;
- Compensation for proven emotional distress;
- Injunctive or declaratory relief;
- Statutory attorney’s fees and litigation costs; and
- Other damages or relief authorized by applicable law.
The amount, if any, depends on the evidence and outcome of the individual matter. These decisions should not be described as monetary verdicts or used to predict the value of another case.
What Should an Employee Do After Workplace Harassment?
An employee who experiences harassment may consider:
- Preserving relevant emails, messages, photographs, schedules, and other records lawfully;
- Preparing a factual chronology with dates, witnesses, and reported incidents;
- Reviewing the employer’s harassment-reporting policy;
- Keeping copies of internal complaints and responses;
- Documenting material changes after a complaint, including scheduling, discipline, reassignment, pay, or termination; and
- Obtaining timely legal advice about administrative deadlines and any arbitration agreement.
An internal report does not necessarily preserve every legal claim. California and federal administrative deadlines may differ and should be evaluated promptly.
Speak With a California Employment Attorney
Recent California decisions provide meaningful protections, but they do not guarantee that every harassment case will remain in court or result in compensation. The allegations must satisfy applicable law, and the timing and language of the arbitration agreement may matter.
Contact GOODMAN SULLIVAN LAW GROUP INC at 310-721-4071 or bgoodman@goodsullaw.com to request a confidential consultation concerning workplace sexual harassment, retaliation, or an employment arbitration agreement.
Disclaimer: This post provides general information about California and federal employment law as of August 2026. It is not legal advice, does not predict the outcome or value of any matter, and does not create an attorney-client relationship. The cited decisions addressed arbitration and did not award damages. Laws, deadlines, and the status of judicial decisions may change. Do not send confidential information unless the firm has confirmed an attorney-client relationship in writing.
