New Act Forces Public Companies to Publicly Disclose Harassment Claims and Mandates Annual Training

The Protections and Transparency in the Workplace Act is a major shakeup for publicly traded companies, essentially forcing them to air out their dirty laundry regarding workplace discrimination and harassment. If a company files reports with the SEC, they are now on the hook for radical transparency, which is huge for investors and employees alike. This bill doesn’t just ask nicely; it mandates specific, detailed public reporting on claims, requires independent investigations, and locks in annual, mandatory training for everyone from the CEO down to the independent contractors.

The New Corporate Scorecard: What Gets Reported

Think of this as a new, mandatory section in the annual report, right next to the financial numbers. Under SEC. 2, public companies must now report a deep dive into every covered discrimination or harassment claim—which includes everything from Title VII issues (race, sex, religion) to age and disability claims. They have to tell the public exactly how many claims they received, how many were settled, how many went to court, and the total dollar amount paid out in settlements and judgments, even if insurance covered it. This is a massive shift, as this kind of data is usually kept under wraps.

For the average person, this means two things: First, investors (like anyone with a 401k) get a clear picture of a company’s risk profile regarding toxic workplace culture and future litigation costs. Second, employees get a transparent look at whether their company is actually dealing with issues or just sweeping them under the rug. Management—the CEO, CFO, General Counsel, and every Board member—must sign off on this report, confirming they have policies to ensure this data is reported accurately.

The Catch-22 of Independent Investigations

One of the most interesting parts of this bill is found in SEC. 3, which deals with how claims must be investigated. If a covered claim comes in, the company must hire an outside law firm to conduct a neutral, fact-finding investigation. The catch? The company can only hire that outside firm if every single employee involved in the claim agrees on which firm to use. If consensus fails—say, one person refuses to agree—the external investigation is blocked.

This creates a potential nightmare scenario. While the intent is to ensure impartiality, the requirement for unanimous agreement sets an incredibly high bar. A single employee could effectively veto an independent review, forcing the claim to be handled internally, which often benefits the company more than the claimant. It’s a loophole that could undermine the entire section’s focus on impartiality, leaving employees right back where they started: subject to an internal review process.

Mandatory Training and the Power of the Bystander

Beyond reporting, the Act focuses heavily on prevention via mandatory training (SEC. 4). Every covered employee—including contractors—must receive annual training on what discrimination is, how to report it, and their rights. New hires must complete it within 60 days. Crucially, the training must include bystander intervention instruction, teaching employees how to safely step in or report what they witness, and detailing the protections they receive for doing so.

This section also mandates an annual employee survey, managed by an outside law firm, to gauge workplace safety and comfort with reporting. If you work at a covered company, expect a new anonymous tip line to pop up, too. Any report made through this line must immediately be sent to the General Counsel, the head of HR, and the entire Board of Directors. This ensures that serious claims land directly on the desks of the people with the power to act, significantly raising the stakes for corporate leadership.