Uber agrees to pay $4.4million to resolve sex discrimination charge

Uber has agreed to dish out a $4.4million settlement to resolve a 2017 Equal Employment Opportunity Commissioner’s charge of sex discrimination. 

In a Wednesday press release, the EEOC announced that the settlement ended an extensive investigation where the agency determined that Uber ‘permitted a culture of sexual harassment and retaliation against individuals who complained about such harassment, in violation Title VII of the Civil Rights Act of 1964.

Former-CEO and co-founder Travis Kalanick stepped down as CEO in June 2017 after the company launched its own investigation into their work culture and allegations of gender discrimination. 

Kalanick still remains on Uber’s board. Calls for his resignation started in February, when former Uber employee Susan Fowler wrote about her year working at the company.

Fowler alleged that she and other women at the company were subject to constant harassment by men, and that when she did take complaints to human resources they were always dismissed and nothing was done to change the toxic environment.

Uber is to set up a class fund to compensate anyone who the EEOC ‘determines experienced sexual harassment and/or related retaliation after January 1, 2014.’

In addition to the class fund, the company will also work to create a system to identify employees who have been named in more than one harassment complaint and for identifying managers ‘who failed to respond to concerns of sexual in a timely manner.’ 

Uber will also have to update its policies – with input from a third-party – and continue conducting climate surveys. 

The company has agreed to be monitored for three years by former EEOC Commissioner Fred Alvarez, the release states

Their exit interviews will also need to be vetted for instances of workplace sexual harassment and retaliation. 

The company has agreed to be monitored for three years by former EEOC Commissioner Fred Alvarez, the release states.

Uber has also agreed to allow all female staff employed at the company from January 1, 2014 and June 30, 2019, to submit a questionnaire to determine whether they may be eligible for monetary relief. 

A claims administrator will be sending notices to these employees with further information. 

Uber has also agreed to allow all female staff employed at the company from January 1, 2014 and June 30, 2019, to submit a questionnaire to determine whether they may be eligible for monetary relief

EEOC Chair Janet Dhillon shared that the resolution should serve as a ‘model for businesses committed to truly leveling the playing field where opportunity is not circumscribed by one’s gender.’ 

The sentiment was shared by EEOC Commissioner Victoria Lipnic, who shared that the resolution ‘holds Uber accountable.’

She added that the resolution ‘positions the company to innovate and transform the tech industry by modeling effective measures against sexual harassment and retaliation.’

For EEOC San Francisco District Director William Tamayo, the resolution was a way for companies to see how to go after ‘superstar harassers.’  

Uber’s Chief Legal Officer Tony West said in the release: ‘We’ve worked hard to ensure that all employees can thrive at Uber by putting fairness and accountability at the heart of who we are and what we do. I am extremely pleased that we were able to work jointly with the EEOC in continuing to strengthen these efforts.’

 ‘In particular, employers should take note of Uber’s commitment to holding management accountable and identifying repeat offenders so that high-performing, superstar harassers are not allowed to continue their behavior,’ he added. 

‘The tech industry, among others, has often ignored allegations of sexual harassment when an accused harasser is seen as more valuable to the company than the accuser.’ 

Uber’s Chief Legal Officer Tony West said in the release: ‘We’ve worked hard to ensure that all employees can thrive at Uber by putting fairness and accountability at the heart of who we are and what we do. I am extremely pleased that we were able to work jointly with the EEOC in continuing to strengthen these efforts.’