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Under Armour: No More Expensing Strip Club Visits

A report found that, until recently, company credit cards were used by employees for the outings.

REUTERS

The party's over for Under Armour Inc. executives and employees who used the company credit card to pay for visits to strip clubs.


There's now a restriction for the long-time practice, according to a report by The Wall Street Journal published on Monday. The company sent an email earlier this year, informing employees that corporate cards to pay for strip clubs, gambling and other adult entertainment is now prohibited.

Under Armour Chairman and CEO Kevin Plank leads a predominantly male executive leadership team, except for the company's interim CHRO, Michele Campion. The Baltimore-based retailer is said to have fostered a culture degrading to women.

In comparison, on average, 30 percent of the CEO and direct reports level at the DiversityInc Top 10 and Hall of Fame companies are women, while 24.2 percent are racially diverse (11.2 percent Black, 8 percent Latino and 5 percent Asian). Under Amour has never participated in DiversityInc's Top 50 competition.

Plank and President Patrik Frisk told employees on Monday that The Wall Street Journal article was "tough to read."

"This is not the culture we envision for Under Armour," they wrote, in a letter obtained by CNN Business.

The men also said that a "meaningful cultural transformation" is already taking place at the company. "We can and will do better," they added.

Plank participated in some of the strip club visits with athletes and co-workers, according to the report, which quoted interviews with more than a dozen mostly anonymous current and former employees and executives. Under Armour told the Journal that Plank didn't conduct business at strip clubs or use company funds.

However, these outings "were symptomatic of practices women at Under Armour found demeaning," the report said.

The company has partnerships with prominent women, including Misty Copeland.

In 2017, Copeland and other athletes with Under Armour endorsement deals, including Dwayne Johnson and Stephen Curry, slammed Plank for stating his support for President Trump.

"I think [President Trump] is highly passionate," Plank said in a CNBC interview. "To have such a pro-business president is something that is a real asset for the country. People can really grab that opportunity."

The Conversation (2)
votetocorrect08 Nov, 2018

This doesn't surprise me because years ago this was par for the course for most large businesses.

Oracle Underpaid People of Color and Women by More Than $400M: Department of Labor

Oracle's "suppression of pay for its non-white, non-male employees is so extreme that it persists and gets worse over long careers," according to a federal filing.

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The U.S. Department of Labor, in a federal filing on Tuesday, accused Oracle of underpaying thousands of people of color and women employees by more than $400 million. Employees with years of experience are paid as much as 25 percent less than their white male peers.

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Supreme Court to Allow Trump Administration Transgender Military Ban

"The Trump administration's cruel obsession with ridding our military of dedicated and capable service members because they happen to be transgender defies reason and cannot survive legal review," Jennifer Levi, of GLBTQ Legal Advocates & Defenders, said.

The Supreme Court has allowed President Trump to move forward with his ban of transgender people from military service, as the case continues to make its way through lower courts.

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Two Students Leave University of Oklahoma After Blackface Video Surfaces

"Obviously we've had a second incident in several years," University of Oklahoma President James Gallogly said. "It shows that there must be something systemic. We have work to do."

Screenshot/ Snapchat

Another video of a student in blackface has surfaced at the University of Oklahoma (OU).

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Senator Holds Airlines Accountable When Servicing Customers With Disabilities

U.S. Sen. Tammy Duckworth (D-Ill.) is working to stop wheelchairs from getting damaged during air travel.

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U.S. Senator Tammy Duckworth (D-Ill.) is leading the charge for better airline management of customers' motorized wheelchairs. Duckworth has been confined to a wheelchair since her helicopter was shot down in Iraq and she lost both of her legs.

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California Defies Trump's Order NOT to Pay Furloughed Workers Unemployment

Over 55 percent of civil service employees in the state are people of color.

Screenshot from ABC 7

President Donald Trump signed legislation on Wednesday that said all furloughed workers would receive back pay once the government reopens. However, the Trump administration has ordered states not to provide unemployment coverage to federal workers who have been required to work without pay during the partial government shutdown.

California Governor Gavin Newsom said on Thursday the U.S. Department of Labor sent states a letter with that mandate, according to NPR. The Department of Labor said the roughly 420,000 federal employees who are "essential" cannot file for unemployment as they are "generally ineligible."

It also reported 10,454 initial claims by federal workers for the week that ended Jan. 5, doubling the previous week's figure. Thousands more have applied since, state officials said.

Newsom said the decision by the Department of Labor's decision was "jaw-dropping."

"So, the good news is, we're going to do it, and shame on them," he said.

"From a moral perspective, there is no debate on this issue and we will blow back aggressively on the Department of Labor."

The California Employment Development Department (EDD) reports unemployment claims for one week during the shutdown are up 600 percent from the same time last year. The state has over 245,000 federal employees.

Over 55 percent of civil service employees in the state are people of color, and they are over 35 percent of the country's federal workforce.

Newsom encouraged people to continue to apply while the state figured out how to get the money. He estimated benefits that would last up to 26 weeks and provided a few hundred extra dollars a month. He said he knows it doesn't fix everything, but hopefully it helps.

His message to Trump: "Let us states do the job you can't seem to do yourself."

Some state officials said they had asked utilities and other companies to extend mercy to federal employees, and the federal Office of Personnel Management published sample letters that furloughed employees could send to creditors to ask for patience.

Texas has received more than 2,900 claims from federal workers since the shutdown began on Dec. 22, while Ohio is approaching 700. Kansas reported 445 filings, and Alabama was closing in on 500. Montana said it had logged almost 1,500.

Trump tweeted on Friday that he would be making a "major announcement" on Saturday about the government shutdown.

A senior administration official told CNN that Trump plans to offer Democrats another proposal to end the shutdown.

Reader Question: How are people you know that are furloughed workers surviving?

Black Student in Kansas Sues School District for Racial Discrimination

The dance team's choreographer told Camille Sturdivant that her skin was "too dark" to perform because she "clashed" with uniforms.

Camille Sturdivant has filed a racial discrimination lawsuit against the Blue Valley School District for the abuse she was subjected to as a member of the high school dance team.

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