It is insane. There's a huge line between justice and grift, and I mainly blame lawyers for the latter. If every claim of hostile workplaces resulted in similar settlements, every company would be bankrupt within a few years. A company can have a strict zero tolerance policy, but they can't police every action of every employee while on the clock. Such settlements would likely incentivize companies to put cameras and microphones everywhere, including bathrooms, which would also result in "emotion distress".

Forced arbitration isn't just either, but the court system hasn't left much room for alternative with such overreaching punishments.