Ernst & Young Defies Call To End Forced Arbitration For Sexual Harassment Claims


Travis Dove for HuffPost

Karen Ward has thus far spent $185,000 in arbitration charges to battle EY in her sexual harassment case

In spite of power from lawmakers and girls’s rights advocates, accounting large Ernst & Younger is refusing to let Karen Ward, a former spouse, take her sexual harassment case to a public court docket. 

In a letter to Ward’s lawyers remaining week, EY’s normal suggest Ronald Hauben stated the company is a “great spot for girls to paintings.” He insisted that bringing circumstances to non-public arbitration ― a personal court docket out of doors the general public justice machine with out juries ― is “truthful, environment friendly and cost-effective.” And he emphasised that Ward “voluntarily” agreed to the method.

However thus far Ward has spent an eye-popping $185,000 to arbitrate her claims in opposition to the company, on account of a provision in her employment contract that calls for her to separate the prices of dispute solution. If she have been in a position to carry the case to a public court docket, the price would handiest be $450 in court docket charges.  

Ward instructed HuffPost she had no thought what she used to be entering when she agreed to publish to arbitration as a part of her employment contract. She surely didn’t know what quantity of money it will charge. 

“It’s financially a teach break to be observing those expenses,” Ward instructed HuffPost Tuesday, talking from her house in North Carolina. EYs reaction is discouraging and disappointing, she stated. The perception that the company is a superb position for girls to paintings is insulting: Ward complained of mistreatment, discrimination and harassment when she used to be running at EY all over her time there, she stated.

Ward filed her case in opposition to EY last October, detailing how her boss confused her ― commenting on her “boobs” and “ass” and relegating her to the again of the room with the “gals” at a big convention. She says she used to be retaliated in opposition to and in the end fired for talking up about mistreatment. A next HuffPost investigation exposed emails and different proof detailing the quantity of proceedings Ward lodged when she used to be on the corporate ― and her rising frustration with the company’s reaction.

EY says Ward used to be fired for her efficiency.

Nonetheless, Ward had was hoping EY would backtrack about arbitration within the face of mounting power over her case. After HuffPost reported on Ward’s mounting felony prices in arbitration, a bipartisan crew of New York state legislators slammed the corporate for hypocrisy in an open letter last month. They urged EY to release Ward from her arbitration settlement. 

“It’s nerve-racking that Ernst & Younger is unwilling to acknowledge the detrimental affect arbitration necessities have at the skill of staff to get an excellent listening to,” stated the letter, signed by way of 67 legislators. “Ernst & Younger can’t be a pacesetter on gender equality whilst it’s so a long way in the back of the curve in addressing place of business harassment.”

Ward’s case additionally drew improve and a spotlight from Rep. Carolyn Maloney (D-N.Y.), the National Women’s Law Center, former Deliberate Parenthood president Cecile Richards, and previous Fox anchor and girls’s rights suggest Gretchen Carlson.

Reached by way of electronic mail on Tuesday, Rep. Maloney chastised EY.

“I’m deeply dissatisfied that Ernst & Younger does now not acknowledge how their pressured arbitration insurance policies undermine the battle in opposition to sexual harassment and gender equality,” she stated. “Its choice to inflict monetary and emotional misery upon Karen Ward, whom I applaud for her braveness and backbone, is wrongheaded and will have to forestall. Ernst & Younger must right away loose Karen Ward from those damaging insurance policies that advertise discrimination and give protection to abusers.”

Ward penned an open letter to EY’s new international chairman and CEO, Carmine Di Sibio, pleading to be launched from the arbitration settlement after the legislators spoke up.

“What sort of message do you assume EY is sending about its values when it calls for feminine staff to pay loads of 1000’s of greenbacks to pursue claims of sexual harassment in the back of closed doorways in arbitration?” Ward wrote.  

The 49-year-old Ward had labored for years in finance and stated that not anything had ready her for the lads membership tradition of EY. “The frat tradition I skilled at EY used to be past anything else I ever learn that Wall Boulevard might be like,” stated Ward on Tuesday.

She stated she won little to no improve from ladies who labored there, as a result of only a few ladies have been leaders within the corporate. “No girl ever got here to me,” stated Ward, who labored in a gaggle with virtually no senior ladies. “I might’ve long past to a lady in my chain of command if there have been any.”  

Ward’s case used to be the second one harassment fee filed in opposition to the company in 2018 ― every other former feminine spouse settled claims that EY did not anything after she used to be groped by way of a male colleague.

The letter from Hauben remaining week used to be a reaction to Ward’s contemporary missive ― and didn’t point out the state legislators’ reaction.

He turns out to argue that as a result of Ward used to be well-compensated as a spouse on the company, sharing the prices of dispute solution used to be justified. “Having permitted the advantages of being an EY spouse,” he wrote, “she could also be sure by way of those … provisions.”

Hauben insists that Ward’s claims are with out benefit, a declare EY reiterated in statements to HuffPost and publicly since she filed her fees. 

“EY is aggressively protecting itself in opposition to those baseless claims,” the company stated.

He additionally famous that they have got a feminine chief. “We’re proud that our US Chair and Managing Spouse is a girl,” he wrote within the letter dated Aug. nine. “EY has a longstanding dedication to variety, equity and fairness and a powerful and identified monitor file of being a great spot to paintings for girls.”

A supportive skilled surroundings for ladies would now not drive feminine staff to signal away their rights to visit court docket once they’re sexually confused, drive them to take their grievances to a personal, confidential discussion board and pay loads of 1000’s of greenbacks to have their case heard, stated David Gottlieb, a spouse at Wigdor, the New York legislation company representing Ward.

“It’s utterly self-serving and misguided for a corporation to mention they’re a great spot to paintings for girls with out acknowledging that is an unjust apply,” he stated.

Arbitration is widely believed to learn corporations on the expense of staff, who’re much less more likely to win circumstances ahead of those secretive courts. Even if they do win, research has found financial judgments are most often smaller than they’d be in public courtrooms.

There are a couple of expenses ahead of Congress that may eliminate pressured arbitration in circumstances of sexual harassment, together with the FAIR Act. New York state just lately banned the apply ― even though it’s anticipated that the availability can be overturned in court docket. And a couple of main corporations voluntarily gave it up, together with Fb, Microsoft and Uber.

Ward stated that she’s heard from dozens of girls sure by way of arbitration agreements, together with some EY staff. 

“They see that the price may cause monetary spoil and so they make a selection to are living with injustice,” Ward stated, emphasizing how inspiring and gut-wrenching it’s been to listen to all their tales from other people at a wide variety of ranges. “One of the most attack that’s came about is stunning,” she stated. “I’m left reeling.” 

It’s for those ladies and others that Ward stated she’ll proceed to battle this situation with EY. 

“We’ll do no matter it takes to be heard,” she stated. “It’s now not about me and my prices, despite the fact that that’s extremely tricky to endure. Sufficient is sufficient.”





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