Uber Ends Mandatory Arbitration Clauses for Sexual-Harassment Claims
The move, a rarity in corporate America, comes amid pressure from employees and customers
Uber Technologies Inc. is taking a step toward moving past its scandal-ridden history by ending the company’s use of the widespread but controversial practice of mandatory arbitration for claims of sexual harassment and assault.
The move, coming after pressure from both former employees and customers, will immediately free U.S.-based litigants to sue Uber in open court, rather than in private with an impartial arbitrator.
Uber Technologies Inc. is taking a step toward moving past its scandal-ridden history by ending the company’s use of the widespread but controversial practice of mandatory arbitration for claims of sexual harassment and assault.
The move, coming after pressure from both former employees and customers, will immediately free U.S.-based litigants to sue Uber in open court, rather than in private with an impartial arbitrator.
.. Legal experts say mandatory-arbitration clauses may lead some victims to walk away from harassment or discrimination claims in part because they can’t find plaintiffs’ lawyers to take their cases, many of whom work on contingency fees.
.. Arbitrators usually don’t follow federal rules of civil procedure and, compared with courts, impose tighter limits on pretrial discovery. And such cases are generally confidential and harder to appeal.