Employee Survival Guide® - Former NFL Player Teyo Johnson's Sexual Harassment Story, Forced Arbitration, and One Unbelievable CEO

Episode Date: December 5, 2024

Comment on the Show by Sending Mark a Text Message.This episode is part of my initiative to provide access to important court decisions  impacting employees in an easy to understand conversational format using AI.  The speakers in the episode are AI generated and frankly sound great to listen to.  Enjoy!What if the future of workplace dynamics hinges on a single legal battle? This episode unpacks the groundbreaking case of former NFL player Teyo Johnson's lawsuit against EveryRealm and its CEO, Janine Yorio, centered around allegations of sexual harassment and a controversial "KYP game." As we navigate this complex legal landscape, we highlight the transformative Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA), which empowers employees to sidestep mandatory arbitration and take their claims to court. This pivotal shift could redefine how companies address workplace harassment, ushering in a new era of accountability and employee empowerment.We explore the significance of understanding employment contracts and the invaluable role of meticulous documentation when facing harassment or discrimination. Johnson's experience serves as a crucial reminder of the enduring importance of respect, fairness, and accountability, even in the rapidly evolving metaverse work environment. By examining how laws like Title VII and the New York City Human Rights Law are applied, this conversation sheds light on the evolving legal system that supports employees more than ever. Join us as we discuss how Johnson's case could reshape power dynamics in workplaces and encourage companies to take proactive steps against harassment.Click here to read the case decision in Teyo v. Everyrealm 22 civ 6669 (SDNY Oct. 6 2022).This episode involves the Johnson v. Everyrealm, Inc. case, where a former employee sued his employer and executives for race and pay discrimination, sexual harassment, and retaliation. The employer sought to compel arbitration based on an employment agreement, but the employee argued that the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) of 2021 prevented this. The court ruled that the employee's sexual harassment claims, plausibly alleging unwanted gender-based conduct in New York City, were sufficient to invoke the EFAA. Consequently, the court denied the employer's motion to compel arbitration, allowing the entire case to proceed. The court's decision hinged on interpreting the EFAA's scope to encompass the entire case, not just the sexual harassment claims. 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. 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.

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. All right, strap in everyone because today we are diving deep into a legal case that's causing quite a stir. Yeah, it's a fascinating one. Oh, it really is. It's got everything. A former NFL player, a powerful CEO in the world of digital real estate.

And accusations that could really change how we view workplace dynamics in this whole metaverse age we're in. Exactly. And the timing couldn't be more interesting. Oh, right. With this new law, the ending forced arbitration of Sexual Assault and Sexual Harassment Act. The EFA, as everyone's calling it. Yeah, the EFA, and it's really shaken things up. So let's just lay it all out for our listeners.

We're talking about Teo Johnson. Right, former NFL player. Had a great career, later joined every realm, this company that's really making waves in the metaverse. Making a big splash, yeah. But things went, well, things went very wrong. Yeah, very quickly. And now Johnson is suing every realm and its CEO, Janine Yorio.

Pretty high stakes. High stakes indeed. So what exactly is Johnson alleging here? 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. With colleagues, even clients. She allegedly called it the KYP game.

The KYP game? What is that? Short for Know Your Personnel, apparently. Know Your Personnel? I mean, I don't even know what to say to that. It's just so disturbing. Incredibly disturbing, yeah. And this is where things get really interesting,

legally speaking. Johnson's employment contract had a mandatory arbitration clause. Right, meaning any disputes had to be handled privately. Right, yeah. Exactly. But here's the kicker. The EFAA throws a huge wrench into that.

Right, so how does that work, exactly? So the EFAA throws a huge wrench into that. Right. So how does that work exactly? 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 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 activate the EFAA. So they're essentially deciding whether to rip up that arbitration agreement. Is that what you're saying? Yeah, pretty much.

And what did they decide? Did they just, you know, toss the arbitration for just the sexual harassment claims? Or was it broader than that? Much broader. The court said, nope, the EFAA invalidates the entire arbitration agreement. The whole thing. The whole thing, not just the parts about the sexual harassment. Wow. That's a big win for Johnson.

Huge win. Yeah, and that could have some serious implications for other companies, right? Absolutely. Massive repercussions, potential. So even though Johnson's case has other allegations like racial discrimination and retaliation, none of that's going to arbitration.

Yep, none of it. That seems like a pretty expansive interpretation of the EFAA. 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. So what could this mean for other companies,

the ones that have these mandatory arbitration clauses in their contracts? Are we going to see a ton of lawsuits hitting the courts now? It's certainly a possibility. This ruling, it could make companies think twice, you know, before trying to push employees into arbitration. Especially if sexual harassment's involved. Especially then.

They might start dealing with these problems head on instead of trying to hide behind these clauses. Yeah, because now they know they can't. Exactly. That's a pretty significant shift in the power dynamic, wouldn't you say? Oh, absolutely. And it all stems from this case with Johnson

and this KYP game. 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. Sure. So we've got the Latle 7. Right, which is a federal law. Right, prohibiting discrimination based on, you know, sex, race, religion, national origin,

all that. That's the big one. And then there's the New York State human rights law, the NYSHRL. Which is similar to Title VII. Pretty similar, yeah. But, you know, reading through all this, the New York City Human Rights Law, the NYCHRL. Yeah, that one's really important in this case. It seemed to stand out. I mean, it's even stronger than Title VII

and the NYSHRL when it comes to sexual harassment. You're absolutely right. The NYCHRL, it's got a lower bar for proving sexual harassment compared to those other two. So what does that mean exactly? It means that it doesn't require like severe or pervasive conduct to be unlawful. Oh, interesting. Like Title VII and the NYCHRL do. Okay. It just needs to create a hostile work environment. So even if there are what might seem like less serious incidents, they could still be grounds for legal action if they create that hostile environment.

Exactly. And in this case, the court found that Johnson's claims under the NYCHRL, they were plausible. They were. Yeah. And that plausibility is what triggered the EFAA, right? And led to that whole arbitration agreement getting tossed. It's like a chain reaction, you know?

The NYCHRL sets off the EFAA. Wow. This is pretty complex stuff. It is. But I think we're starting to see how all these legal pieces fit together. Yeah, starting to make sense. 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. 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. Yeah, it was it was awful. Like he claimed she made these comments about him being expensive, like she owned him. Oh, wow. I mean, how do you even respond to something like that? It's just it's dehumanize. Yeah, exactly. And remember, we're talking about a former NFL player here. Right. Someone who's, you know, used to tough situations. Exactly. So if he's feeling this level of discomfort,

I mean, what must it be like for employees who don't who don't have that same, you know, confidence? That's a That's a good point. They might not feel like they can speak up. 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. That's a heavy accusation.

Yeah. And it goes beyond just offensive language. It's like this whole idea of tokenism that so many companies are struggling with. Yeah, that they'll hire people from underrepresented groups, but not actually create a space where they feel welcome. 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. A crime example, yeah. He also says there was this crypto gambling scheme going on at the company. Yeah, I read about that. And that when he raised concerns about whether it was even legal, he was retaliated against. 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. So we've got, we've got the alleged sexual harassment, racist comments, and now retaliation for whistleblowing. Yeah, it's not looking good for every realm. It really isn't. But the question is, is this just a one-off case of a toxic workplace, or is it a sign of something bigger happening in the tech industry? That's the big question, isn't it? It is, because the tech world, it's known for being, well, pretty intense.

Pass-paced, cutthroat, yeah. Yeah, and while there are tons of great companies out there, there's also this underlying pressure. Oh, absolutely, and that pressure can lead to some bad behavior. 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 Right. They don't have the platform exactly or the the resources to fight back And and that's why this case and the EFAA are so important I agree because it's shining a light on these issues. It's it's forcing us to have this conversation

Yeah, and the EFAA by giving people a way to take these cases to court, right? It's a game changer. It could really change things. Because now companies know they can't just sweep these problems under the rug. Yeah, they might face real consequences. Public scrutiny, legal battles, the whole nine yards. Exactly, that's powerful.

It is. This one case could shift the entire landscape of how companies deal with these issues. I think you're right. It really strikes me that this isn't just about legal stuff. It's about real people. Oh, absolutely. And the impact these kinds of allegations can have.

Yeah, Johnson's career, his reputation, his sense of self-worth. I mean, all of that. It's all been affected by what he says happened. Yeah, and even with his background, his success, it must have taken a lot of courage. Oh yeah, immense courage. To come forward like this. Absolutely. And it makes you think how many others are out there. Right, facing these same things. But feeling like they can't say anything. Like they have no voice. Yeah. And no options. And that's what's so important about this case. It really is.

It's not just about Johnson and every realm. It's bigger than that. Much bigger. It's setting a precedent. Sending a message. That this kind of behavior. Won't be tolerated, that people can speak up. And they can get justice.

Exactly. And, you know, this whole thing is playing out against this backdrop of the metaverse. Right, which has another layer of complexity. It does. I mean, you've got these incidents happening online. In virtual spaces? Right, but also in person. During meetings, conferences, it's blurring the lines.

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? Right, what even is a hostile work environment in the metaverse? That's a good question. The courts are still figuring all this out. In this case, I mean, it could have a huge impact on how they decide things in the future.

Oh, absolutely, it's a game changer. So for our listeners who are thinking, okay, this is all very interesting, but I don't work in the metaverse, so what's in it for me? Yeah. What are the key takeaways here? Well first of all, know your rights.

Always important. The EFAA. It's new, but it's powerful. And it can really impact how these workplace disputes are handled. If you've got an employment contract, look for that arbitration clause. And know what it means. Exactly. And if you experience harassment or discrimination, know your options.

Yeah. And to that point, documentation is key. Oh, absolutely crucial. If you're ever in a situation where you feel uncomfortable, harassed, keep track of everything. Dates, times, specific incidents, witnesses, emails, any communication you have with HR. All of it. That documentation can be so important. If you need to take legal action, it's invaluable. And remember, you are not alone. There's help out there. There are organizations, legal professionals who can help you through this. Don't be afraid to reach out. This deep dive into Teo Johnson's case has been, well, it's been really eye-opening. It has. It's a reminder that even with all this technology, all these new ways of working.

The basics still matter. Respect, fairness, accountability. Those are still the foundations. They are crucial. In this case, it really shows how the legal system is trying to keep up with, well, with everything that's changing. Adapting to the times.

This might be just the beginning, and it'll be fascinating to see how it all plays out. Absolutely. Thanks for joining us for this deep dive. It's been a pleasure. Stay informed, know your rights, and as always, stay curious. If you like the Employee Survival Guide, I'd really encourage you to leave a review. We try really hard to produce information to you that's informative, that's timely,

that you can actually use and solve problems on your own and at your employment. So if you like to leave a review anywhere you listen to our podcast, please do so and leave five stars because anything less than five is really not as good, right? I'll keep it up. I'll keep the standards up. I'll keep the information flowing at you. If you'd like to send me an email and ask me a question, I'll actually review it and post it on there. You can send it to mcaru at If you'd like to send me an email and ask me a question, I'll actually review it and post it on there. You can send it to mcaru at capclaw.com. That's capclaw.com.