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Wells Fargo Ends Forced Arbitration for Sexual Harassment

  • Clause is under scrutiny across industries in the #MeToo era
  • At Wells Fargo, policy applied to workers hired since 2015
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Photographer: Victor J. Blue/Bloomberg
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Wells Fargo & Co. said it will no longer require arbitration when an employee files a sexual harassment complaint, making it the first of the largest U.S. banks to announce an end to the practice.

The change, which applies to future harassment claims, is being made following discussions with stakeholders including Clean Yield Asset Management, which submitted a shareholder proposal late last year that focused on the practice, Wells Fargo said in a statement Wednesday. Clean Yield, which focuses on investments that reflect clients’ values, has since withdrawn the proposal.