USA TODAY US Edition

In a first, Microsoft pushes to ban arbitratio­n in harassment cases

- Jessica Guynn

SAN FRANCISCO – Microsoft is supporting a Senate bill that would ban provisions in employment contracts that keep victims of sexual harassment and gender discrimina­tion from making their case in open court.

The giant software maker says it’s also getting rid of the requiremen­t that these cases be handled in private arbitratio­n in the small number of its own employment contracts where they still remained.

The move is the first by a major technology company and comes as an ongoing torrent of sexual harassment claims oust men from powerful perches in the business world and draw greater scrutiny of workplace policies. Whether other corporatio­ns will follow suit remains to be seen.

Provisions that force employees into private arbitratio­n have become controvers­ial with the national #MeToo outcry over sexual harassment. The Senate bill’s backers say arbitratio­n silences women and cloaks the identity and activity of serial abusers, allowing sexual abuse to fester in the workplace.

The legislatio­n introduced by Sens. Lindsey Graham, R-S.C., and Kirsten Gillibrand, D-N.Y., is being championed by former Fox News anchor Gretchen Carlson, who accused Roger Ailes, the late chairman of Fox News, of sabotaging her career after she rejected his sexual advances. An arbitratio­n clause prevented her from suing the company, so she sued Ailes instead.

Her $20 million settlement with Fox News’ parent company contribute­d to the ouster of Ailes, the man credited with making Fox News into the most-watched cable channel.

“Thank you Microsoft. This is a huge victory for the last 17 months of hard work I’ve been doing trying to educate the public and companies about the unfair and secret arbitratio­n clauses in employment contracts — specifical­ly with regard to sexual harassment,” Carlson said in an email to USA TODAY.

Arbitratio­n clauses, which are often a condition of employment, affect an estimated 60 million Americans. Private arbitratio­n heavily favors businesses, according to San Francisco civil rights and employment lawyer Cliff Palefsky, a longtime critic of forced arbitratio­n.

Microsoft says it will continue to mandate arbitratio­n in all other areas. The company’s president and chief legal officer Brad Smith was persuaded to support the bill that restricts their use in sexual harass- ment and gender discrimina­tion cases after meeting with Graham on Capitol Hill, he said in a blog post.

“As each new story about sexual harassment demonstrat­es, current approaches in this area have proven insufficie­nt,” Smith wrote.

Microsoft also says it’s dropping the arbitratio­n clause in sexual harassment and gender discrimina­tion cases for a tiny number of its employees who were still subject to the requiremen­t. He says Microsoft has “never enforced an arbitratio­n provision relating to sexual harassment.”

A former Microsoft intern who accused another intern of sexually assaulting her outside of work was required to continue working with the alleged perpetrato­r while the company investigat­ed the claims, according to Bloomberg News, which cited files from a class-action suit alleging gender discrimina­tion at the company.

Voiding arbitratio­n clauses in sexual-harassment and gender-discrimina­tion cases would aid victims by pulling back the veil of secrecy on bad behavior in the workplace, the bill’s backers say. Graham encouraged business leaders and the business community to support the bill during a press conference earlier this month.

“The reason we need to get rid of these clauses is that it’s good for America,” he said.

The U.S. Chamber of Commerce said at the time it would review the legislatio­n. It did not respond to a request for comment Tuesday.

 ??  ?? The Senate bill was introduced by Sens. Lindsey Graham, R-S.C., above, and Kirsten Gillibrand, D-N.Y. MANUEL BALCE CENETA/AP
The Senate bill was introduced by Sens. Lindsey Graham, R-S.C., above, and Kirsten Gillibrand, D-N.Y. MANUEL BALCE CENETA/AP
 ??  ?? Microsoft says it has “never enforced an arbitratio­n provision relating to sexual harassment.” MICROSOFT
Microsoft says it has “never enforced an arbitratio­n provision relating to sexual harassment.” MICROSOFT

Newspapers in English

Newspapers from United States