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Article

15 May 2018

Author:
Shannon Bond and Peter Wells, The Financial Times

USA: Uber withdraws mandatory arbitration policy in sexual assault and harassment cases

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"Uber drops mandatory arbitration in sex assault cases", 15 mai 2018

Uber is scrapping mandatory arbitration for people who bring sexual assault or harassment allegations against the company and will set up a public database of such incidents, in its latest moves to overhaul its culture. The policy change is part of a wider rethink of the ride-hailing company's approach to sexual harassment under chief executive Dara Khosrowshahi's new mantra to "do the right thing, period"...
Customers, drivers and employees will be able to take their legal claims to open court as an alternative to confidential mediation or arbitration proceedings, if they wish. Alleged victims will no longer be required to sign confidentiality or non-disclosure agreements that prevent them from speaking about their claims, although settlement terms and amounts will remain confidential. The company also said it would commit to publish a "safety transparency report" that will include and categorise data on sexual assault and other incidents that occur across its services...
The changes apply only to claims of sexual assault and harassment, and only to individual cases, not class-action lawsuits. They also apply only in the US. Uber will conduct further reviews of its global policies on responding to assault and harassment on a country by country basis...
Uber has had a longstanding policy of mandatory arbitration for employees and customers involved in harassment and assault allegations. Such policies are common in corporate America, with more than 60m people subject to mandatory arbitration under their employment contracts, according to a study from the Economic Policy Institute, a think-tank. But the clauses have come under the spotlight with the rise of the #MeToo movement, with critics arguing they can be used by companies to keep victims silent. In December, Microsoft ended forced arbitration for sexual harassment claims and endorsed a proposed federal law that would make such agreements unenforceable.