| Ending forced arbitration was number one on Susan Fowler's list of "Five Things Tech Companies Can Do Better": https://www.susanjfowler.com/blog/2017/5/20/five-things-tech... 1. End Forced Arbitration
This is the single most important thing
a company can do to prove to its employees
that it is dedicated to acting ethically,
legally, responsibly, and transparently.
Microsoft's change of policy makes sense when you consider that NDA's are losing their effectiveness in cases of sexual abuse:https://www.reuters.com/article/us-usa-misconduct-agreements... Some states already have laws restricting
confidentiality agreements that conceal "public
hazards," such as product defects or environmental
contamination.
The same reasoning could potentially be used to
invalidate non-disclosure agreements covering
allegations of sexual misconduct, lawyers say,
on the theory that some harassers could pose danger
to others if their conduct is not revealed.
|
But eliminating the ability of parties to agree to a confidential settlement is a huge mistake.
It will result in victims getting less money. An allegation of harassment, without further evidence, is not going to fare well in court. Yet the accused might be willing to pay a settlement to put the matter to rest and avoid negative publicity. By prohibiting them from getting confidentiality in exchange for payment, you have removed their largest incentive to pay the accuser. Further, a publicized settlement will be taken as an admission of guilt, which is a further incentive to go to court.
And those accused, who may be innocent, are protected as well. They can avoid having their name smeared in the media, where they stand no chance of getting a fair hearing in the current climate.