Facebook to Drop Forced Arbitration in Harassment Cases



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SAN FRANCISCO – said said FR Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook Facebook SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN SAN

Facebook commented on Google. Last week, 20,000 Google employees staged a walk from the company's offices to the world. Microsoft changed its arbitration policy about a year ago, as did the ride-hailing company Uber six months ago.

The technology industry, known for its groundbreaking products and its growing landscape, is one of the world's leading companies. Forcing employee complaints into arbitration has become commonplace.

In arbitration, employment experts say, the playing field shifts to businesses. Boxes are decided by arbitrators instead of judges, and they are more likely to be arbitrated, according to Alexander J. S. Colvin, a professor at the Cornell University School of Industrial and Labor Relations.

"This is a pivotal moment for our industry and corporate America more broadly," Lori Goler, a Facebook vice president, said in a statement. "We think this is the right thing to do and hope other companies do, too."

The use of arbitration clauses, embedded in the fine print of contracts, has soared in the last decade, as corporations try to keep disputes away from public scrutiny.

Chris Baker, an employment lawyer and partner at the law firm Baker Curtis & Schwartz, said arbitration cases were judged by a judge of the courts. They are often shrouded in confidentiality, and the arbitration awards tend to be less than those in a jury trial.

Mr. Baker said it would be easy to arbitrate in all kinds of employee disputes because it would be difficult to draw the line at sexual harassment.

"I think it's going to be avalanche," he said. "This is very meaningful."

The tech industry is reacting, at least in part, to anger among employees who have been unpunished, especially when powerful executives are involved. The walkout at Google was prompted by New York Times article last month that revealed the company had paid out credibly accused of sexual harassment.

Because the claims are often kept under wraps in arbitration hearings, critics say harassers often move easily to other jobs.

It has become a significant issue in Silicon Valley, where gender is stark and tales of sexual harassment are rampant. Criticism of arbitration requirements and their role in the context of arbitration and confidentiality.

The Equal Employment Opportunity Commission has noted that it has been forced to arbitrate "can prevent employees from learning about similar issues.

Facebook said it would make an arbitration option, but not a requirement, for employees reporting a sexual harassment claim. Facebook said it had been planning to make changes to its arbitration policy for "a while" but did not specify a time frame. There is no indication the company is facing specific pressure to alter its policies.

In May, Uber announced that it was eliminating the practice for employees, riders and drivers who make such claims against the company. Uber took the step after 14 women who have Uber accused of sexually assaulting them wrote a letter to the company's board, urging it to waive the requirement and allow them to proceed with a lawsuit in open court.

Lyft, Uber's top competitor, made a similar policy changes around the same time.

In December, the United States has proposed a class action lawsuit. The women lost the case and are appealing.

Microsoft's policy has been largely symbolic because it has rarely used arbitration clauses in its employment agreements. However, Microsoft also said it would support the legislation of the unenforceable arbitration requirement.

Apple has never arbitrated a harassment or discrimination claim, said Kristin Huguet, a spokeswoman company. It had a forced arbitration requirement for new employees, but it was made arbitration optional and then eliminated the clause from employment contracts altogether. She did not specify when. Ms. Huguet said that even those who have agreed to such an agreement are no longer bound by it.

Companies large and small have figured out how to use arbitration to prevent employees from taking part in a class action. Some states judges have called for action on the subject of business and employment practices – a "get out of jail free" card for employers.

In recent years, it has become tough to apply for a credit card. The same is true for getting a job.

The use of arbitration clauses can be traced back to a coalition of credit card companies and retailers that come up with a plan to shield themselves from expensive lawsuits. Starting around 1999, the group 's legal teams began discussing how to use the fine print of contracts to stop class actions. Bank of America, Chase, Citigroup, Discover, Sears, Toyota and General Electric all attended.

Arbitration clauses that are not allowed class-action suits are used by Macy's and Kmart. In 2016, when Gretchen Carlson sued Roger E. Wings, her train boss at Fox News, over allegations of sexual harassment, his lawyers pushed for the case to move into arbitration.

Google Walkout for Real Change on Twitter: "When we say this is a global movement, we did not just mean Google – it's inspiring to see the effects of #GoogleWalkout spread past our company."

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