Wells Fargo has clarified how it will implement its new policy in which employees are no longer required to arbitrate claims tied to sexual harassment, a break with the practices of most large companies.
“Our employees will not be required to ‘opt out’ or take any other affirmative action. They will be able to file any future sexual harassment claims in court effective immediately,” a spokesperson said in a statement shared with ThinkAdvisor.
This measure is important, says financial advisor Rachel Robasciotti, CEO of Robasciotti & Philipson and a co-founder of the impact investing platform RISE (Return on Investment & Social Equity), which helped form the Force the Issue project in September 2019 to end mandatory arbitration for sexual harassment.
“We say that opt-outs, waivers and other forms of affirmative action are not in the best interest of employees,” Robasciotti explained in an interview. “It’s not a good way to [be given] the legal right of non-arbitration, … since [it often means] employees have to sign a separate form in which they affirmatively say ‘I want to take you to court’” in cases of sexual harassment.