Uber Ends Mandatory Arbitration Clauses for Sexual-Harassment Claims

The move, a rarity in corporate America, comes amid pressure from employees and customers

Uber Technologies Inc. is taking a step toward moving past its scandal-ridden history by ending the company’s use of the widespread but controversial practice of mandatory arbitration for claims of sexual harassment and assault.

The move, coming after pressure from both former employees and customers, will immediately free U.S.-based litigants to sue Uber in open court, rather than in private with an impartial arbitrator.

Uber’s...