What happens when a high-profile legal battle exposes the dark underbelly of workplace culture? In this riveting episode of Employee Survival Guide®, Mark Carey dives deep into the explosive case of former NFL player Tao Johnson versus the digital real estate company EveryRealm. Johnson is not just fighting for himself; he’s taking a stand against sexual harassment, racial discrimination, and retaliation for whistleblowing, setting the stage for a crucial conversation about employee rights in today’s workforce.
This case is particularly significant due to the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), which empowers employees to opt-out of mandatory arbitration agreements that often silence victims of workplace harassment and discrimination. As we dissect the disturbing allegations against EveryRealm CEO Janine Yorio—including coercive sexual advances and racial slurs—we underscore the urgent need for transparency and accountability in workplace culture.
Listeners will gain invaluable insights into how this landmark case could reshape the landscape of employment law, particularly in the tech industry. We explore the implications of workplace discrimination, the importance of documenting incidents, and how the outcomes of such cases can empower employees to advocate for their rights. This episode serves as a powerful reminder of the critical role that awareness plays in navigating employment disputes and understanding your legal rights at work.
Join us as we unpack the complexities of this case, emphasizing the necessity for companies to foster a healthy work environment free from harassment and discrimination. Whether you’re an employee seeking to understand your rights or an employer striving to create a supportive workplace culture, this episode of Employee Survival Guide® is a must-listen. Prepare to be informed, empowered, and ready to take action in your career.
Don’t miss this opportunity to learn about the legal rights that protect you against discrimination—whether it’s sexual harassment, race discrimination, or retaliation. Tune in and arm yourself with the knowledge you need to survive and thrive in today’s challenging work environment.
Click here to read the case decision in Teyo v. Everyrealm 22 civ 6669 (SDNY Oct. 6 2022).
If you enjoyed this episode of the Employee Survival Guide please like us on Facebook, Twitter and LinkedIn. We would really appreciate if you could leave a review of this podcast on your favorite podcast player such as Apple Podcasts and Spotify. Leaving a review will inform other listeners you found the content on this podcast is important in the area of employment law in the United States.
For more information, please contact our employment attorneys at Carey & Associates, P.C. at 203-255-4150, www.capclaw.com.
Disclaimer: For educational use only, not intended to be legal advice.
Transcript:
Speaker #0 Hey, it’s Mark here and welcome to the next edition of the Employee Survival Guide, where I tell you, as always, what your employer does definitely not want you to know about, and a lot more. Speaker #1 All right, strap in everyone, because today we are diving deep into a legal case that’s causing quite a stir. Speaker #2 Yeah, it’s a fascinating one. Speaker #1 Oh, it really is. It’s got everything. A former NFL player, a powerful CEO in the world of digital real estate. Speaker #2 And accusations that could really change how we view workplace dynamics in this whole metaverse age we’re in. Speaker #1 Exactly. And the timing couldn’t be more interesting. Speaker #2 Right. With this new law, the ending forced arbitration of sexual assault and sexual harassment act. Speaker #1 The EFA, as everyone’s calling it. Yeah, Speaker #2 the EFAA. And it’s really shaking things up. Speaker #1 So let’s just lay it all out for our listeners. We’re talking about Tao Johnson. Speaker #2 Right. Former NFL player. Speaker #1 Had a great career. Later joined EveryRealm, this company that’s really making waves in the metaverse. Speaker #2 Making a big splash, yeah. Speaker #1 But things went, well, things went very wrong. Speaker #2 Yeah, very quickly. Speaker #1 And now Johnson is suing EveryRealm and its CEO, Janine Yorio. Speaker #2 Pretty high stakes. Speaker #1 High stakes indeed. So what exactly is Johnson alleging here? Speaker #2 Well, Johnson’s complaint is, well, it’s explosive, to put it mildly. He’s claiming Yorio repeatedly pressured him. to engage in sexual activity, and not just with her. Speaker #1 Oh, wow. Speaker #2 With colleagues, even clients. Speaker #1 Oh, my. Speaker #2 She allegedly called it the KYP game. Speaker #1 The KYP game? What is that? Speaker #2 Short for Know Your Personnel, apparently. Speaker #1 Know Your Personnel? I mean, I don’t even know what to say to that. It’s just so disturbing. Speaker #2 Incredibly disturbing, yeah. Speaker #1 And this is where things get really interesting. Legally speaking, Johnson’s employment contract had a mandatory arbitration clause. Speaker #2 Right, meaning? any disputes had to be handled privately. Right. Exactly. But here’s the kicker. The EFAA. Speaker #1 Right. Speaker #2 Throws a huge wrench into that. Speaker #1 Right. So how does that work exactly? Speaker #2 So the EFAA is designed to give people alleging sexual harassment or assault a choice. They can opt out of those pre-dispute arbitration agreements. Speaker #1 Oh, I see. Speaker #2 And take their case to court. So in this case, the court had to figure out if Johnson’s claims were, well, strong enough to you to activate the EFAA. Speaker #1 So they’re essentially deciding whether to rip up that arbitration agreement. Is that what you’re saying? Speaker #2 Yeah, pretty much. Speaker #1 And what did they decide? Did they just, you know, toss the arbitration for just the sexual harassment claims? Or was it was it broader than that? Speaker #2 Much broader. The court said, nope, the EFAA invalidates the entire arbitration agreement. Speaker #1 The whole thing. Speaker #2 The whole thing, not just the parts about the sexual harassment. Speaker #1 Wow. That’s a that’s a big win for Johnson. Speaker #2 Huge win. Speaker #1 Yeah. And that could have some serious implications for other companies, right? Speaker #2 Absolutely. Massive repercussions potential. Speaker #1 So even though Johnson’s case has other allegations like racial discrimination and retaliation, none of that’s going to arbitration. Speaker #2 Yep. None of it. Speaker #1 That seems like a pretty expansive interpretation of the EFAA. Speaker #2 It is. It’s one of the first cases to really test the law’s limits. And what the court is basically saying is that the EFAA, it’s not a scalpel, it’s a sledgehammer. It shatters the whole arbitration agreement. Speaker #1 So what could this mean for other companies, the ones that have these mandatory arbitration clauses in their contracts? Or we can see a ton of lawsuits hitting the courts now. Speaker #2 It’s certainly a possibility. This ruling, it could make companies think twice, you know, before trying to push employees into arbitration. Speaker #1 Especially if sexual harassment’s involved. Speaker #2 Especially then. They might start dealing with these problems head on instead of trying to hide behind these clauses. Yeah, Speaker #1 because now they know they can’t. Speaker #2 Exactly. Speaker #1 That’s a pretty significant shift in the power dynamic, wouldn’t you say? Speaker #2 Oh, absolutely. And it all stems from this case with Johnson and this KYP game. Speaker #1 So before we dive into the other really disturbing allegations in Johnson’s case, I think it’s helpful to break down some of the specific laws that are involved here. Speaker #2 Sure. Speaker #1 So we’ve got the Ladle 7. Speaker #2 Right. Which is a federal law. Speaker #1 Right. Prohibiting discrimination based on, you know, sex, race, religion, national origin, all that. Speaker #2 That’s the big one. Speaker #1 And then there’s the New York State Human Rights Law, the NYSHRL. Speaker #2 Which is similar to Title VII. Speaker #1 Pretty similar, yeah. But, you know, reading through all this, the New York City Human Rights Law, the NYCHRL. Speaker #2 Yeah, that one’s really important in this case. Speaker #1 It seemed to stand out. I mean, it’s even stronger than Title VII and the NYSHRL when it comes to sexual harassment. Speaker #2 You’re absolutely right. The NYCHRL, it’s got a lower bar for proving sexual harassment compared to those other two. Speaker #1 So what does that mean exactly? Speaker #2 It means that it doesn’t require like severe or pervasive conduct to be unlawful. Speaker #1 Oh, interesting. Speaker #2 Like Title VII and the NYSHRL do. Speaker #1 Okay. Speaker #2 It just needs to create a hostile work environment. Speaker #1 So so even if there are, you know, what might seem like less serious incidents, right, they could still be grounds for legal action if they create that hostile environment. Speaker #2 Exactly. And in this case, the court found that Johnson’s claims under the NYC HRL, they were plausible. Speaker #1 They were. Speaker #2 Yeah. Speaker #1 And that plausibility is what triggered the EFAA. Right. Yeah. And led to that whole arbitration agreement getting tossed like a chain reaction, Speaker #2 you know. The NYCHRL sets off the EFAA. Speaker #1 Wow. This is pretty complex stuff. Speaker #2 It is. Speaker #1 But I think we’re starting to see how all these legal pieces fit together. Speaker #2 Yeah, starting to make sense. Speaker #1 So now that we’ve got this legal framework, I think it’s time to delve into, well, the truly disturbing details of what Johnson is alleging happened at every realm. Speaker #2 Let’s do it. So, you know, beyond that pressure to play the KYP game, Johnson claims that. that Yorio’s behavior was just demeaning. Speaker #1 Yeah, it was awful. Like, he claimed she made these comments about him being expensive, like she owned him. Speaker #2 Oh, wow. Speaker #1 I mean, how do you even respond to something like that? Speaker #2 It’s dehumanizing. Speaker #1 Yeah, exactly. And remember, we’re talking about a former NFL player here. Speaker #2 Okay, someone who’s, you know, used to tough situations. Speaker #1 Exactly. So if he’s feeling this level of discomfort, I mean, what must it be like for employees who don’t have that same, you know, confidence? Speaker #2 That’s a good point. You know, they might not feel like they can speak up. Speaker #1 Right. And then the allegations, they get even worse. Johnson says Yurio said it was, quote, worse to have a stupid black person on the team. Because it made the company look like they were just trying to be diverse for appearances. Speaker #2 That’s a heavy accusation. Speaker #1 Yeah. And it goes beyond just offensive language. It’s like this whole idea of tokenism that so many companies are struggling with. Speaker #2 Yeah, that they’ll hire people from underrepresented groups. but but not actually create a space where they feel welcome. Speaker #1 Exactly. Not a truly inclusive environment. And if what Johnson’s saying is true, it seems like every realm might be a perfect example of that. Speaker #2 A crime example, yeah. Speaker #1 He also says there was this crypto gambling scheme going on. Speaker #2 Yeah, I read about that. Speaker #1 At the company, and that when he raised concerns about whether it was even legal, he was retaliated against. Speaker #2 Right. He thought the scheme… where people could buy NFTs of soccer players and then bet on their performance might be illegal. And he says that after he voiced his concerns, Yorio and another executive, Schwartz, started, well, they started making his job harder, you know, and eventually pushed him out. Speaker #1 So we’ve got we’ve got the alleged sexual harassment, racist comments and now retaliation for whistleblowing. Speaker #2 Yeah, it’s it’s not looking good for every realm. Speaker #1 It really isn’t. But but. The question is, is this just like a one-off case of a toxic workplace or is it a sign of something bigger happening in the tech industry? Speaker #2 That’s the big question, isn’t it? Speaker #1 It is because the tech world, it’s known for being, well, pretty intense. Speaker #2 Fast-paced, cutthroat, yeah. Speaker #1 Yeah. And while there are, you know, tons of great companies out there, there’s also this underlying pressure. Speaker #2 Oh, absolutely. And that pressure can lead to some bad behavior. Speaker #1 Yeah. And it makes you think about all the people who… might be experiencing similar things, but don’t feel like they can speak up. Speaker #2 Right. They don’t have the platform. Exactly. Or the resources to fight back. Speaker #1 And that’s why this case and the EFAA are so important. Speaker #2 I agree. Speaker #1 Because it’s shining a light on these issues. Speaker #2 It’s forcing us to have this conversation. Speaker #1 Yeah. And the EFAA, by giving people a way to take these cases to court. Speaker #2 Right. It’s a game changer. Speaker #1 It could really change things. Speaker #2 Yeah. Speaker #1 Because now companies know they can’t just sweep these problems under the rug. Speaker #2 Yeah. They might face real consequences. Speaker #1 Public scrutiny, legal battles, the whole nine yards. Speaker #2 Exactly. That’s powerful. Speaker #1 It is. This one case could shift the entire landscape of how companies deal with these issues. Speaker #2 I think you’re right. Speaker #1 It really strikes me that, you know, this isn’t just about legal stuff. Yeah. It’s about, I mean, real people. Speaker #2 Oh, absolutely. Speaker #1 And the impact these kinds of allegations can have. Speaker #2 Yeah. Johnson’s career, his reputation, his sense of self-worth. I mean. Speaker #1 All of that. Speaker #2 It’s all been affected by what he says happened. Speaker #1 Yeah. And even with, you know, his background, his success, it must have taken a lot of courage. Speaker #2 Oh, yeah. Immense courage. Speaker #1 To come forward like this. Speaker #2 Absolutely. Speaker #1 And it makes you think, how many others are out there? Speaker #2 Right. Facing these same things. Speaker #1 But feeling like they can’t say anything. Speaker #2 Like they have no voice. Speaker #1 Yeah. Speaker #2 And no options. Speaker #1 And that’s what’s so important about this case. Speaker #2 It really is. It’s not just about Johnson and every realm. Speaker #1 It’s bigger than that. Speaker #2 Much bigger. Speaker #1 It’s setting a precedent. Speaker #2 Sending a message. Speaker #1 That this kind of behavior. Speaker #2 Won’t be tolerated that people can speak up. Speaker #1 And they can get justice. Speaker #2 Exactly. Speaker #1 And, you know, this whole thing is playing out against this backdrop of the metaverse. Speaker #2 Right. Which adds another layer of complexity. Speaker #1 It does. I mean, you’ve got these incidents happening online. Speaker #2 In virtual spaces. Speaker #1 Right. But also in person. Speaker #2 During meetings, conferences. It’s blurring the lines. Speaker #1 It really is. And it makes you wonder, you know, how do we apply these legal standards when work isn’t confined to an office anymore? Speaker #2 Right. What even is… A hostile work environment in the metaverse. Speaker #1 That’s a good question. Speaker #2 The courts are still figuring all this out. Speaker #1 In this case, I mean, it could have a huge impact on how they decide things in the future. Speaker #2 Oh, absolutely. It’s a game changer. Speaker #1 So for our listeners who are thinking, OK, this is all very interesting, but I don’t work in the metaverse. So what’s in it for me? Speaker #2 Yeah. Speaker #1 What are the key takeaways here? Speaker #2 Well, first of all, know your rights. Speaker #1 Always important. Speaker #2 The EFAA. It’s new, but it’s powerful. Speaker #1 And it can really impact how these workplace disputes are handled. Speaker #2 If you’ve got an employment contract, look for that arbitration clause. Speaker #1 And know what it means. Speaker #2 Exactly. And if you experience harassment or discrimination, know your options. Speaker #1 Yeah. And to that point, documentation is key. Speaker #2 Oh, absolutely crucial. Speaker #1 If you’re ever in a situation where you feel uncomfortable, harassed, keep track of everything. Speaker #2 Dates, times, specific incidents. Speaker #1 Witnesses, emails, any communication you have with HR. Speaker #2 All of it. Speaker #1 That documentation can be so important. Speaker #2 If you need to take legal action, it’s invaluable. Speaker #1 And remember, you are not alone. Speaker #2 There’s help out there. Speaker #1 There are organizations, legal professionals who can help you through this. Speaker #2 Don’t be afraid to reach out. Speaker #1 This deep dive into Tao Johnson’s case has been, well, it’s been really eye-opening. Speaker #2 It has. It’s a reminder that even with all this technology, all these new ways of working. Speaker #1 The basics still matter. Speaker #2 Respect, fairness. Accountability. Speaker #1 Those are still the foundations. Speaker #2 They’re crucial. Speaker #1 In this case, it really shows how the legal system is trying to keep up with, well, with everything that’s changing. Speaker #2 Adapting to the times. Speaker #1 This might be just the beginning and it’ll be fascinating to see how it all plays out. Speaker #2 Absolutely. Speaker #1 Thanks for joining us for this deep dive. Speaker #2 It’s been a pleasure. Speaker #1 Stay informed, know your rights, and as always, stay curious. Speaker #0 Hey, it’s Mark, and thank you for listening to this episode of The Employee’s Father God If you’d like to be interviewed for our podcast and share your story about what you’re going through at work and do so anonymously, please send me an email at mcary at capclaw.com. And also, if you like this podcast episode and others like it, please leave us a review. It really does help others find this podcast. So leave a review on Apple or Spotify or wherever you listen to podcasts. Thank you very much and glad to be of service to you.