Forced Arbitration, also known as mandatory arbitration, in an employee contract, dictates that if/when an employee brings a lawsuit against their employer for harassment or discrimination, they must go through a private arbitration process to resolve the dispute. Instead of a public court hearing, a private arbitrator decides the outcome of the dispute, leaving no effective right of appeal. Arbitration is generally paid for by the company and performed by retired judges. Arbiters often side with the company, by which they are getting paid. Arbitration clauses in employment contracts are especially concerning as they keep cases hidden, behind closed doors–including issues of workplace harassment and discrimination which continue to be widespread. A workplace that tolerates harassment invites legal, brand, financial, and human capital risk. Companies may experience reduced morale, lost productivity, absenteeism, and challenges in attracting and retaining talent. Unexpected changes in leadership after allegations of harassment or discrimination also puts shareholder value at risk.
Tesla
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Tesla's employees and workplace culture. The report should evaluate the impact of Tesla's current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress and on consumer perceptions of Tesla as an employer.
Our resolution went to vote.
Sunrun
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Sunrun’s employees and workplace culture. The report should evaluate the impact of Sunrun's current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress.
This resolution went to vote and won.
Tesla
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Tesla's employees and workplace culture. The report should evaluate the impact of Tesla's current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress.
Our resolution went to vote.
Tesla
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Tesla's employees and workplace culture. The report should evaluate the impact of Tesla's current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress.
Our resolution went to vote.
Autodesk
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Autodesk's employees and workplace culture. The report should evaluate the impact of Autodesk's current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress.
Our resolution was withdrawn as a result of learning that the use of forced arbitration is not a practice that Autodesk uses, beyond its contract with its CEO. We encouraged the company to also remove, or make voluntary, the use of arbitration for its CEO.
Pattern Energy Group
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Pattern Energy Group’s employees and workplace culture. The report should evaluate the impact of Pattern Energy Group’s current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress.
Technical Exclusion
Natus Medical
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Natus’ employees and workplace culture. The report should evaluate the impact of Natus’ current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress.
Technical Exclusion
Digital Realty Trust
The resolution requested that the Board of Directors to oversee the preparation of a report on the impact of the use of mandatory arbitration on Digital Realty Trust’s employees and workplace culture. The report should evaluate the impact of Digital Realty Trust's current use of arbitration on the prevalence of harassment and discrimination in its workplace and on employees’ ability to seek redress.
Technical Exclusion