Dive Brief:
- Microsoft will eliminate its requirement that employees arbitrate sexual harassment claims, The New York Times reports. The tech giant also announced its support for a federal bill that would ban these agreements.
- Arbitration agreements have been criticized for hampering employees' right to sue alleged harassers in court, while protecting the identities of the accused and allowing serial harassers to continue the misconduct, says the Times.
- Claims unrelated to sex discrimination will still fall under the company's arbitration agreements.
Dive Insight:
Microsoft's move comes in the wake of a stream of harassment allegations that have taken down powerful individuals in the news and various industries.
Although Microsoft has had its own internal struggles with sex discrimination claims, the announcement could signify a culture shift that better allows accusers to come forward with claims.
The tech industry's handling of sexual harassment and discrimination is well-known. This type of mistreatment or prejudice not only hinders innovation, but costs Silicon Valley companies upwards of $16 billion every year from employee turnover. About 80% of those in the tech workforce have felt unfair treatment, sexual harassment, bullying or stereotyping, resulting in 37% leaving their jobs.
But Microsoft is not alone. Major companies including Google, Twitter, Oracle and Uber all faced backlash following claims of gender discrimination. Google in particular fought to withhold its pay data from the Labor Department, which found the company had "systemic compensation disparities against women."