The problem is what happens when all employers follow suit with this arbitration garbage and it becomes standard practice, which it is becoming. Employers have all the leverage in these cases.
What is the problem with arbitration? If I were Ms Pao, I wouldn't want a jury trial. Jurors hate people who they think are looking for a handout.
Here is how it is going to play out: "KPCB is an investment fund, meaning we take money from groups such as a teacher's union retirement fund, and invest it in companies. The returns from those investments are paid back to the investor, ultimately helping secure the retirements of teachers. We pay our employees exceptionally well, because the stakes are so high. Small investment decisions can impact the bottom line of the fund by many millions of dollars".
Juror thinks: "I am not going to take from school teachers to pay Ms Pao because her feelings were hurt. I am sorry some guy harassed her, but that doesn't mean she wins the lottery. Hell, I'd let my boss kick me in groin every day if it meant I got her salary.".
Jury trials are a bad idea when the jury can't relate to the victim. Getting a fair jury is almost impossible in a sexual harassment case.
The problem is that the company pays for the arbitor, who is usually an independent contractor hired on a per-arbitration basis. The arbitor is ecnomically pressured to side with the company, because siding against the company is likely not to result in repeat business. This effect is well-established and has been documented (I'll come back and post a reply with sources if I have the time).
Jury trials are a bad idea when the jury can't relate to the victim. Getting a fair jury is almost impossible in a sexual harassment case.
Getting a fair jury is not only possible, it's almost impossible not to get a fair jury for a civil trial. Sexual mores and attitudes have changed significantly over the past several decades, to the point where sexual harassment is no longer perceived as acceptable in the general workplace by either gender.
Note that in male-centric fields (sports, programming, etc.) attitudes toward sexual harassment have not changed as much as they have in more gender-balanced fields. This skewed perspective on sexual harassment has made more than a few plaintiff's lawyers quite wealthy.
Here is how it is going to play out: "KPCB is an investment fund, meaning we take money from groups such as a teacher's union retirement fund, and invest it in companies. The returns from those investments are paid back to the investor, ultimately helping secure the retirements of teachers. We pay our employees exceptionally well, because the stakes are so high. Small investment decisions can impact the bottom line of the fund by many millions of dollars".
Juror thinks: "I am not going to take from school teachers to pay Ms Pao because her feelings were hurt. I am sorry some guy harassed her, but that doesn't mean she wins the lottery. Hell, I'd let my boss kick me in groin every day if it meant I got her salary.".
Jury trials are a bad idea when the jury can't relate to the victim. Getting a fair jury is almost impossible in a sexual harassment case.