Gov. Josh Shapiro’s administration paid $295,000 in taxpayer funds to settle a sexual harassment complaint from a female former deputy secretary involving a former top aide in his office, according to documents obtained through the state’s Right to Know Law.
The 14-page document, signed on Sept. 5, stipulated that neither the commonwealth nor the governor’s office would be held liable for any wrongdoing regarding the allegations she made against Shapiro’s former Secretary of Legislative Affairs Mike Vereb.
The agreement contains a clause barring both sides from discussing the matter; however, it allows for the settlement to be released if there is a legal requirement, such as the Right to Know Law, to do so.
The settlement reached through the Pennsylvania Human Relations Commission mediation process closes the matter, barring any litigation or charges arising from the woman’s claims against the governor’s office. PennLive is withholding her name due to the nature of the allegations.
“The commonwealth confirms the existence of a settlement agreement but due to its terms, is unable to comment further on this agreement,” said Shapiro spokesman Manuel Bonder.
He further stated that in mediation, no party is required to settle claims “but it is often in the best interest of both parties to do so. Further, a settlement requires both parties to agree to all of the statements, provisions and assertions contained therein. Mediation programs do not focus on the validity of the underlying claims but attempt to craft a settlement that all parties can agree on.”
Funding to pay the settlement comes in part out of the budget for the governor’s office but mostly out of the commonwealth’s self-insured liability program, according to administration officials.
Sources familiar with resolving sexual harassment cases in both the public and private sectors say settlements can be an attractive option for a variety of reasons. It is a way to manage the risk given the uncertainty of an outcome if a case goes to court. It can be less damaging to reputations. Litigation can be time-consuming with cases taking no fewer than three years to reach a conclusion. Among others, protracted litigation can be costly.
The former employee accused Vereb, a longtime Shapiro confidant, of subjecting her to lewd and sexually inappropriate comments and unwanted sexual advances during the few weeks that she worked for the administration.
In the Pennsylvania Human Relations Commission complaint filed in June, the woman said she was retaliated against when she complained to administration officials. She resigned in early March after 27 days, saying she couldn’t continue working in that environment.
The woman’s attorney, Charles Pascal of Armstrong County, confirmed the settlement but declined to comment further pursuant to the terms of the settlement. The settlement provides a $196,365 payment to the woman and $49,517 to each of the two law firms she had hired to represent her through this process.
Vereb, who declined comment for this story, resigned his $183,708-a-year Cabinet-level post in late September as the woman’s human relations commission complaint began being circulated with media outlets. The announcement of his departure from the governor’s office made no mention of the allegations, but focused on his role helping achieve Shapiro’s legislative accomplishments.
The woman, who worked in the legislative affairs office, said in a statement attached to the Human Relations complaint that Vereb’s inappropriate behavior began shortly after she began working for the Shapiro administration.
She cited instances where she said Vereb made inappropriate statements in staff meetings, including one in which she alleged he said that Sen. Katie Muth, D-Montgomery County, wanted to have sex with him. Muth called the insinuation the accuser made about her “a degrading lie.”
A former staff member, who was at the meeting, said the sexual reference the woman attributed to Vereb “never came out of his mouth. None of that came out of his mouth. I don’t know where she got that from.”
The former staff member, who asked to remain anonymous out of concern for retribution, disputed other statements in the woman’s complaint, although the staffer said Vereb could be gruff and used profanities. That person did not recall seeing or hearing anything to suggest Vereb was pursuing a sexual relationship with his accuser.
Earlier this month, Shapiro made his first public comments about the situation when responding to reporter’s question following an unrelated event.
He said, “The fact that this is a personnel matter, I can’t comment on any specifics and that’s really designed to be able to protect all parties involved in any matter.”
He further voiced his commitment to a “healthy, safe, professional work environment” for employees who work for his administration. He referred to his chief of staff, Dana Fritz, and General Counsel Jennifer Selber as “two strong women” who he said work daily to ensure that type of work environment is in place.
“Should anyone feel that we’re not meeting those standards, we have an independent robust professional process to allow people to come forward safely and have their concerns heard,” Shapiro said. “That’s something that I’m committed to. The leaders in my administration are committed to. And that is something we adhere to in every case.”
Sen. Lisa Boscola, D-Northampton/Lehigh counties, said after meeting with Shapiro along with other Democratic senators, she was “very confident him and his administration is handling this as best as they can.”
The former staffer who spoke to PennLive said that shortly after the woman resigned, the Equal Employment Opportunity Commission began scheduling interviews with staffers to vet her allegations. The EEOC claim then transitioned to the human relations commission for mediation.
Shapiro further told Politico, “I have a long and extensive track record of standing up for victims of sexual abuse, harassment.”
Several Republican and Democratic lawmakers have questioned his commitment to standing up for victims, noting he allowed Vereb to stay on the job for months after the allegations were made.
Senate President Pro Tempore Kim Ward, R-Westmoreland County, is among those who have been publicly critical of Shapiro’s handling of the matter. She said the governor handled the situation poorly and questioned “how taxpayer funds are supporting this issue.”
When asked about that at recent public event, Shapiro responded, “consider the source.”
Administration sources said the governor – who as attorney general brought attention to the widespread and systemic cover-up of child sexual abuse by clergy across the Catholic church in Pennsylvania – was referring to the Senate Republican leader’s refusal to advance legislation to change the civil statute of limitations on childhood sexual abuse crime without bundling it with two priorities important to their caucus: voter ID and reforms to the state’s regulatory approval process.
Sens. Kristen Phillips-Hill, R-York County, and Tracy Pennycuick, R-Montgomery County, condemned the Shapiro Administration for its lack of transparency about the matter arising from within the governor’s office.
Ward indicated she might call a legislative hearing to look into sexual harassment allegations against Vereb. Her spokeswoman Erica Clayton Wright said, “We are reviewing the matter with other Senate members and considering solution driven options, which may include a hearing.”