On July 6, 2016, Fox News personality Gretchen Carlson filed a lawsuit in New Jersey state court against Roger Ailes, then chairman and CEO of Fox News, alleging sexual harassment and retaliation in violation of the New York City Human Rights Law, N.Y.C. Adm. Code §8-107 (Section 8-107). Ailes removed the case to federal court, where he moved to stay proceedings and compel arbitration in New York City pursuant to the arbitration clause in Carlson’s employment agreement with Fox News. The case ultimately settled for a reported $20 million,1 but not before raising certain issues regarding the enforcement of arbitration agreements by non-signatories to those agreements.2
The Arbitration Provision
Carlson’s employment agreement with Fox News contained the following arbitration provision:
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