Pinterest experienced a challenging week, marked by the resolution of a gender discrimination lawsuit and a spotlight on ongoing inequities within the technology sector. The company reached a substantial $22.5 million settlement in the case brought by its former COO. 

Simultaneously, Airbnb announced new objectives concerning diversity and inclusion, although the company has yet to release a diversity report following its 2018 data disclosure last year. 

These developments, and further updates, are detailed in this week’s edition of Human Capital. Subscribe here to receive this newsletter directly in your inbox every Friday at 1 p.m. PT.

Pinterest Resolves Gender Discrimination Lawsuit with $22.5 Million Settlement

Pinterest has announced the conclusion of the gender discrimination lawsuit initiated by former COO Francoise Brougher. In August, Ms. Brougher filed a suit against Pinterest, alleging gender discrimination, retaliatory actions, and wrongful termination.

The terms of the settlement stipulate that Pinterest will provide $20 million to Ms. Brougher and her legal representation. Furthermore, both Pinterest and Ms. Brougher will contribute $2.5 million to initiatives focused on “Advancing women and underrepresented communities” within the technology industry, as stated in a company filing.

Discussion on Black Women’s Role in Driving Progress

Prior to Ms. Brougher’s lawsuit against Pinterest, former Pinterest employees Ifeoma Ozoma and Aerica Shimizu Banks publicly voiced allegations of racial and gender discrimination during their time with the company. I had the opportunity to speak with Ms. Ozoma and Ms. Banks regarding the settlement and its comparison to their own experiences. 

During a conversation with TechCrunch earlier this week, Ms. Ozoma and Ms. Banks articulated a perceived disparity in treatment compared to Ms. Brougher’s outcome. While Ms. Brougher received a $20 million payout, Ms. Ozoma and Ms. Banks each received less than one year’s worth of severance pay. Their perspectives on the settlement are as follows:

Banks:

Ozoma:

Pinterest Commits to Implementing DEI Recommendations

Pinterest has pledged to implement the recommendations put forth by its special committee of the board of directors. This committee was established earlier this year in June, following public allegations of racial and gender discrimination made by former employees Ifeoma Ozoma and Aerica Shimizu Banks. 

The following are some of the key recommendations:

• Mandatory unconscious bias training for all employees, encompassing managers and executives.
• Provision of supplementary training programs focused on inclusivity and unconscious bias.
• Inclusion of “diverse employees” on interview panels evaluating job applicants.
• Recognition and reward of employees for their dedication to supporting and advancing DEI initiatives.
• Publication of a diversity report on a bi-annual basis for a minimum of two years, transitioning to annual publication thereafter.
• Establishment of clear criteria for promotion eligibility.
• Enhancement of Pinterest’s existing harassment and discrimination policies.
• Creation of a centralized team dedicated to workplace investigations to ensure consistent and equitable outcomes.

Gig Economy Workers Prepare for Future Challenges

On Extra Crunch, I conducted an in-depth analysis of the future landscape for gig workers and the companies that employ them, particularly in light of the passage of Proposition 22. 

The core takeaway is that Proposition 22 does not signify the conclusion of the debate surrounding the classification of gig workers. Companies are exploring similar legislative approaches in other regions, while gig workers are preparing for continued advocacy.

Looking ahead, predicting the next steps for companies like Uber and Lyft is difficult, according to Brian Chen of the National Employment Law Project, but they will likely target significant markets.

“They will likely focus on areas where they know there’s been on-the-ground workers organizing and activists they’d finally like to suppress, and where enforcement has been strong against the company,” he explained to TechCrunch.

Mr. Chen identified New York, Illinois, Massachusetts, New Jersey, Colorado, Pennsylvania, Washington, Oregon, and Michigan as potential areas of focus. The National Employment Law Project (NELP) intends to actively participate in opposing such efforts, alongside the workers themselves.

“We already know companies are doing this proactively, so we need to be doing this proactively as well,” Bain stated. “I think there is a lot we are going to be up against. It depends on some of the people who are appointed in labor positions and what their actual principles and values are, but I’m a little more optimistic. Things that were not possible to do under Trump will just be really difficult to do under Biden, but not impossible.”

The complete, 2,318-word article is available here (an Extra Crunch membership is required).

Gig Workers Rising to Launch App for Prop 22 Rights

Gig Workers Rising is preparing to launch an application designed to assist gig workers in understanding their rights and benefits under Proposition 22. 

“[…] workers know that gig companies have a history of making and breaking promises to workers,” the organization’s website states. “These corporations depend on you not knowing your rights and being unable to advocate for the benefits you are owed.”

Earlier this week, Lyft detailed the benefits now accessible to its drivers. 

Airbnb Announces New DEI Objectives

Airbnb, having recently become a publicly traded company with a $100 billion valuation, has recently established two goals to enhance diversity within the home-sharing and experiences platform, acknowledging that the company “is nowhere near satisfied with the current situation,” as stated in a blog post.

By the end of 2025, Airbnb aims to have 20% of its U.S. workforce comprised of underrepresented minorities, encompassing individuals who identify as American Indian or Alaska Native, Black or African American, Hispanic or Latinx, or Native Hawaiian or Other Pacific Islander. Currently, underrepresented minorities constitute just 12% of the company’s employee base.

The second objective is to achieve a 50% representation of women within the company by the end of 2025. 

Intel’s Diversity Report Includes New Data on Underrepresented Women

Key findings from the report include:

• The representation of Hispanic employees increased from 10% to 10.5% year over year.
• Representation of underrepresented minorities at the executive level decreased from 8.8% to 8.4%.
• The proportion of underrepresented women in executive roles increased from 1.8% to 2.4%.

Registration Open for TechCrunch Sessions: Justice 2021

Finally, registration is now open for TC Sessions: Justice 2021. The event will be held entirely online, and tickets are available for just $5 each. 

The event will take place virtually on March 3, 2021. We have already confirmed speakers such as Arlan Hamilton, founder and Managing Partner of Backstage Capital, Clarissa Redwine, co-organizer of the Kickstarter Union, and Naj Austin, founder and CEO of Ethel’s Club/Somewhere Good. 

Further details to follow!