Wells Fargo takes big step to address workplace sexual harassment

Wells Fargo announces that it is ending the use of mandatory arbitration for workplace sexual harassment.

Wells Fargo announced today that it will end its use of mandatory arbitration for workplace sexual harassment claims going forward. This major advancement in meaningfully addressing workplace sexual harassment comes as a result of the company’s dialogue with Clean Yield Asset Management.

With this commitment, Wells Fargo joins the ranks of companies that have taken a leadership role in ending the use of mandatory arbitration for workplace sexual harassment claims, including Microsoft, Facebook, and Google. It is believed to be the first big bank to take this important step.

Clean Yield’s Director of Shareholder Advocacy, Molly Betournay, praised Wells Fargo for the new policy. “By ending the use of mandatory arbitration for sexual harassment claims, Wells Fargo has raised the bar for financial institutions aiming to root out sexual harassment in the workplace. This is a win for Wells Fargo’s more than 250,000 employees. We urge other companies, particularly other big banks, to follow suit.”

Wells Fargo’s new commitment is timely, as shareholders increase pressure on companies to end the use of mandatory arbitration. Clean Yield and other shareholders have filed proposals at several companies asking them to review and report on the use of mandatory arbitration for workplace claims.