B2 News Business Culture & Trends · May 21, 2026

This week in 5 numbers: More than 1 in 5 employees say they’ve witnessed unethical or illegal conduct at work

Over 1 in 5 workers have witnessed workplace misconduct, new HR data reveals.

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Five numbers came out of the HR world this week — and together they paint a pretty uncomfortable picture of what's happening inside American workplaces right now.

The most striking figure: 22% of employees say they've witnessed illegal or unethical conduct at work, according to a study commissioned by law firm Outten & Golden. Even more troubling, 21% said they felt pressured to compromise their own ethics on the job. When more than 1 in 5 workers are seeing or experiencing this, it's hard to argue that misconduct is just an occasional bad-apple problem.

On the corporate governance front, an analysis by Equilar and 50/50 Women on Boards showed that women held 29.9% of Russell 3000 company board seats in Q1 2026. That sounds like progress — but the trend is actually slipping, not climbing, which is raising serious concerns about whether boardroom diversity efforts are stalling out.

There's also some notable legal action to report. A home care company agreed to pay $3 million to settle allegations it intentionally misclassified employees as independent contractors to avoid paying them overtime. Misclassification cases like this one are a growing headache for employers — regulators are watching, and the financial penalties are getting bigger. Meanwhile, compressor manufacturer A.G. Equipment Co. agreed to pay $4.25 million to resolve EEOC charges that it violated Title VII when it fired all workers who didn't provide proof of COVID-19 vaccination back in 2021. The case is a reminder that mass dismissals — even during a public health crisis — can expose companies to significant legal liability.

Finally, Target is facing heat from three investors who are urging shareholders to vote against the reelection of its leadership at the upcoming annual meeting. The pressure centres on the retailer's decision to roll back several DEI initiatives — a move that has clearly not gone unnoticed by the investment community.

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📚 Key vocabulary

misclassify (verb)
to wrongly put someone or something into the wrong category, often to gain an advantage
"The audit revealed that dozens of workers had been misclassified as freelancers, denying them key employment benefits."
misconduct (noun)
unacceptable or wrong behaviour, especially by someone in a position of responsibility
"The HR director launched an internal review after reports of financial misconduct reached senior management."
liability (noun)
legal or financial responsibility for something, especially when things go wrong
"Failing to document disciplinary procedures properly can expose a company to significant legal liability."
governance (noun)
the systems and processes used to direct and control an organisation, especially at the highest level
"Strong corporate governance requires boards to act transparently and in the best interests of all stakeholders."
roll back (phrase)
to reduce, reverse, or remove something such as a policy or programme that was previously in place
"The new CEO decided to roll back the flexible working policy, requiring all staff to return to the office full-time."

✨ Useful phrases for this topic

"feel pressured to compromise their ethics"
Use this phrase when describing a situation where someone faces pressure from colleagues or management to act against their values or professional standards.
"A recent survey found that nearly a quarter of employees feel pressured to compromise their ethics when chasing end-of-quarter targets."
"expose companies to significant legal liability"
Use this phrase when warning that a business decision or policy could lead to serious legal consequences or financial penalties.
"Ignoring harassment complaints from staff can expose companies to significant legal liability under employment law."
"raise serious concerns about"
Use this phrase when pointing out that a trend or situation is generating genuine alarm or criticism among stakeholders.
"The high staff turnover rate in the sales division is raising serious concerns about the team's management culture."

Advanced sentence structures

Patterns from this article you can use in meetings, emails, and everyday English

Structure 1

In context

A home care company agreed to pay $3 million to settle allegations it intentionally misclassified employees as independent contractors to avoid paying them overtime.

The skeleton

Frame: [Party] agreed to pay [amount] to settle allegations [that] [subject] [verb phrase].

What it does: Reports a legal or financial resolution where one side accepts liability through payment.

Quick swap: "The retailer agreed to pay €500,000 to settle allegations it had overcharged customers for years."

More examples

  • "The pharmaceutical company agreed to pay $2 billion to settle allegations it had hidden dangerous side effects from regulators."
  • "The landlord agreed to pay £80,000 to settle allegations he had illegally evicted tenants without proper notice."
  • "The tech firm agreed to pay a significant fine to settle allegations it had shared user data without consent."

Easy exercise

Arrange the words and add the missing structural elements to build a correct sentence.

  1. a manufacturer · agreed to pay · $4.25 million · to settle allegations · it had fired workers · for refusing vaccination
  2. the logistics company · agreed to pay · €1.2 million · to settle allegations · it had denied breaks · to warehouse staff
Show answers
  • "A manufacturer agreed to pay $4.25 million to settle allegations it had fired workers for refusing vaccination."
  • "The logistics company agreed to pay €1.2 million to settle allegations it had denied breaks to warehouse staff."

Open exercise

Write your own sentence using this structure. You can write about anything — here are some ideas if you need them:

  • A company that misused employee data or pay records
  • A business that broke safety or environmental rules
  • A public figure or organisation involved in a financial dispute

One possible answer: "The airline agreed to pay $15 million to settle allegations it had deliberately misled customers about cancellation refunds."

Structure 2

In context

An analysis by Equilar and 50/50 Women on Boards showed that women held 29.9% of Russell 3000 company board seats in Q1 2026.

The skeleton

Frame: A [study/report/analysis] by [organisation] showed that [subject] [verb phrase], [time reference].

What it does: Attributes a finding to a specific source and anchors it in time, making claims sound evidence-based.

Quick swap: "A report by the World Health Organization showed that screen time among teenagers had doubled over the past decade."

More examples

  • "A survey by the Chartered Institute of Personnel and Development showed that nearly half of UK workers felt disengaged from their roles in 2025."
  • "A study by Stanford University showed that remote employees were 13% more productive than their office-based colleagues."
  • "An analysis by the International Energy Agency showed that renewable energy investment had outpaced fossil fuels for the first time."

Easy exercise

Arrange the words and add the missing structural elements to build a correct sentence.

  1. a study commissioned by Outten & Golden · showed · that 22% of employees · had witnessed · unethical conduct · at work
  2. a report by the OECD · showed · that the gender pay gap · had narrowed · significantly · over the last ten years
Show answers
  • "A study commissioned by Outten & Golden showed that 22% of employees had witnessed unethical conduct at work."
  • "A report by the OECD showed that the gender pay gap had narrowed significantly over the last ten years."

Open exercise

Write your own sentence using this structure. You can write about anything — here are some ideas if you need them:

  • Workplace trends such as burnout, flexible working, or staff turnover
  • Health or education statistics from a government or university report
  • Environmental or economic data from a recent news story

One possible answer: "A study by McKinsey & Company showed that companies with diverse leadership teams were 35% more likely to outperform their competitors."

💬 Discussion questions

1

If you witnessed unethical behaviour at your workplace, what would stop you from reporting it — and what would make you feel safe enough to speak up?

2

Women hold just under 30% of board seats at major US companies, and that number is falling. What do you think organisations need to do differently to actually move that figure forward?

3

When a company faces a major legal settlement like the ones in this article, who do you think should be held accountable — the HR department, senior leadership, or someone else?