Lawsuit From Former Executive Accuses WeWork of Gender Pay Inequity
Lisa Bridges, who headed the company's compensation programs, said in a complaint filed Thursday in Manhattan Supreme Court that WeWork had a "dearth" of women in senior-level positions and paid women "significantly less than men."
June 21, 2019 at 04:12 PM
4 minute read
A former WeWork Cos. executive has accused the workspace-sharing startup and the company's co-president of gender discrimination and retaliation, claiming that she had been forced out of her job after repeatedly raising concerns with management.
Lisa Bridges, who headed the company's compensation programs, said in a complaint filed Thursday in Manhattan Supreme Court that WeWork had a “dearth” of women in senior-level positions and paid women “significantly less than men.”
According to the filing, Bridges raised the issues late last year with Jennifer Berrent, WeWork's co-president and former chief legal officer, but was rebuffed and eventually put on leave amid an effort to discredit her. In one instance, Bridges said that Berrent justified the pay disparities, saying, “men take risks and women don't.”
A spokeswoman for WeWork on Friday called the suit “meritless” and said the company intended to fight it.
“Jen Berrent is of the highest moral and ethical character, and we stand behind her completely,” the spokeswoman said in a statement. “WeWork is committed to being an equitable and welcoming workplace for all employees, and we will continue to support women leaders at all levels of the company.”
The lawsuit, filed in New York County Supreme Court, came weeks after a construction executive accused the company of age discrimination, and as WeWork is ramping up for an initial public offering.
According to the complaint, pay-equity problems were well known to Berrent and the company's leadership. The filing said that a previous internal study revealed a significant companywide pay gap, which had never been addressed or disclosed to workers.
In 2018, Bridges directed WeWork's people analytics team to conduct a gender pay analysis, which the complaint said revealed that women were compensated at much lower levels than men, especially with regard to equity grants. According to the filing, Bridges discovered shortly after her arrival at WeWork that, out of 58 grant awards totaling more than $1 million, only three had gone to women.
Bridges said she took her findings to WeWork's senior leadership in October, but the company showed “no interest” in addressing the issues. According to the complaint, Berrent acknowledged the findings, but defended the disproportionate pay.
“Men demand more money. Women just say yes,” Berrent responded, according to the complaint.
Bridges said she later refused to represent publicly that no such pay gap existed, ultimately contributing to her eventual ouster from the firm. Bridges said that Berrent cut her out of important meetings, and ultimately rendered her unable to do her job.
When she complained about Berrent's behavior, the suit said, Bridges was abruptly put on leave, while WeWork engaged a law firm to investigate her claims. Meanwhile, Bridges said, the company tried to draw out the probe, while seeking out her replacement and asking employees to dig up “dirt” on her.
“Although the investigators were supposed to [be] investigating claims relating to equal pay practices and related retaliation against plaintiff, WeWork employees were being asked to provide negative information about plaintiff,” the complaint said. ”More than two months passed without a single communication to plaintiff from WeWork or the investigators as to what was going on with the investigation or whether she would ever be allowed to return to her job.”
The six-count lawsuit accused WeWork of discrimination, gender-based harassment, retaliation and equal pay violations under New York labor law.
The case is captioned Bridges v. WeWork.
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