Uber to pay $10 million to settle discrimination case

Uber to pay $10 million to settle discrimination case

Uber will pay $10 million to settle a class-action lawsuit brought on by 420 female and minority engineers who accused the company of discrimination and creating a hostile workplace.

As a part of the settlement, Uber has agreed to change its compensation and promotion practices for women and minority employees at the company. If approved, the plaintiffs’ lawyers at Outten & Golden would monitor the reforms for three years after they take effect.

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Other changes the company agreed to in the settlement include requiring Uber to publish a diversity report twice a year, having its executives discuss the status of its internal diversity and steps it's taking to improve it during a semi-annual business review and requiring all new hires to complete diversity and inclusion training.

Uber would also have to adhere to certain maternity and paternity leave requirements and provide flexible work arrangements to its employees, among other changes.

“This settlement involves claims dating back to July 2013 and, while we are continually improving as a company, we have proactively made a lot of changes since then,” an Uber spokesperson said in a statement.

The company said it has implemented a “new salary and equity structure” and “overhauled” its performance review process.

Uber also released a diversity report for the first time last year, showing underrepresentation among women and minorities at the company in line with the entire technology industry's demographics.

The settlement comes one year after former Uber employee Susan Fowler revealed pervasive sexual harassment and a culture of mistreatment of women at the ride-hailing company.

Uber has struggled through a series of debacles and mishaps since Fowler’s post, ultimately culminating in the company bringing on new CEO Dara Khosrowshahi as a part of an effort to reform the scandal-prone company.

Since Khosrowshahi has taken the helm, however, Uber has still dealt with subsequent issues. In November, it was revealed that Uber paid hackers $100,000 to stay quiet over a breach in which data from 57 million user accounts was stolen. This month, one of its self-driving vehicles struck and killed a pedestrian in Arizona.