A well run employer should respect its workers as human beings, no matter their position, tenure at the company, whether they’re seen as “rock stars” or problem employees. Part of that respect, and a legal obligation, is not to tolerate sexual harassment. No matter how management learns of harassment, it must pursue an independent investigation.  If evidence of harassment is shown, then effective discipline should be taken.

Courts don’t like to second guess employers when it comes to employee discipline, but failure to impose appropriate discipline, up to and including termination, could expose the Company to liability and damages claims by victims of unpunished harassers.  If evidence is strong and wrongdoing is great, then termination of employment is likely, especially if the transgressor has committed multiple acts in the course of employment.

Internet sensation and transportation empire Uber has made the press not only for its worldwide network of drivers but for its out of control frat house style of management. After allegations of sexual harassment came to light, the company claimed it was going to change. Uber presents an example of what NOT to do as a company, unless you are looking for disgruntled workers, a bad reputation, and a magnet for plaintiffs’ lawsuits.

Last year, Uber announced it fired 20 employees after investigations into harassment, discrimination and inappropriate behavior, according to the New York Times. The terminations were announced at a staff meeting at Uber’s San Francisco headquarters.

Uber’s management has become the Poster Child for poisonous Silicon Valley company cultures.

• Its original chief executive, Travis Kalanick, became infamous for ignoring rules and regulations and turning the former start-up into a company valued at a nearly $70 billion employing 12,000 people (not counting the drivers).
• One employment attorney quoted in the article stated that number of firings shows “something very, very wrong at the company” and “most places don’t have this level of things going wrong.”

Uber’s internal dysfunction came to light when a former employee, Susan Fowler, stated in a blog her supervisor sexually harassed her, she reported it to the human resources department, but they ignored her claims. Others later reported systemic problems with Uber which are not uncommon among employers: a premium was placed on those who were strong performers and who generated growth while rule and policy (if not legal) violations by these rock stars were commonly overlooked.

After Fowler’s claims made the news, Uber hired former U.S. attorney general Eric H. Holder Jr. and his law firm to investigate company’s culture. A different law firm investigated Fowler’s allegations.

Uber has also been “cleaning house” with a number of executives leaving and new ones being hired. If you’re looking for work, the company is also looking for a Chief Operating Officer to provide more leadership help. That job opening was announced after Kalanick was caught on video verbally abusing an Uber driver. Management sets the example, which may have been Uber’s problem.

In June of 2017, under pressure from the public and several major investors, Kalanick resigned, but remains a presence since he retained control of a majority of Uber’s voting shares. Last September, Kalanick blindsided the company by appointing two Board members. The Board took steps to curtain Kalanick’s power.

In a surprise move, earlier this year, Kalanick announced his plans to sell off nearly a third of his stake in the ride-hailing service.

If you have questions or concerns about sexual harassment in the workplace, contact the employment attorneys for workers at Hanan M. Isaacs, P.C., at 609-683-7400, or contact us online to set up a near-term reduced fee initial consultation at our Central Jersey location in Kingston.  We will listen to your facts, explain the law, and recommend your best pathways to monetary and social justice.  Call today. You will be glad you did.