>> incentivize companies to put cameras and microphones everywhere, including bathrooms
No. This incentivizes companies to take complains seriously. Tesla isn't being punished because an employee did something. Employees always do things. Tesla is being punished for allowing the behavior to continue for an extended period of time. They don't need to install cameras to detect/prevent every occurrence. They need to institute a functional system that detects and handles repeat offenders. That might be as simple as a means for complaints to be lodged, investigated and acted upon. And when they find people acting like this, yes they do need to actually fire them.
And then inevitably get sued for $137M by some of the people they fired or some of the people whose complaints weren't responded to satisfactorily because whatever system they come up with, will occasionally fail.
Punishments that are disproportionate to the offense are never a good policy. Ask any people who were on the receiving end of those throughout history. Just because it's a company being punished, does not change anything fundamentally. It's still an insane punishment for a single offense.
It's telling that almost nobody would choose non-hostile working conditions over being paid off more than they will earn in a lifetime even as a senior employee. When litigation is so significantly more desirable than the supposedly desirable outcome of non-hostile work environment, you have a much bigger problem than what you'd started with.
>> Punishments that are disproportionate to the offense
This is a civil matter, not criminal. The punishment is proportional to both the crime and the size of the defendant. A bug company will always require a greater level of punishment in order to induce change.
If you think that, fine them and burn 90% of the money instead of giving it to the plaintiff, to remove perverse incentives for employees to excessively litigate. Or whatever other method accomplishes the same goal. You can't just choose to be blind to half the incentives in this transaction.
No. This incentivizes companies to take complains seriously. Tesla isn't being punished because an employee did something. Employees always do things. Tesla is being punished for allowing the behavior to continue for an extended period of time. They don't need to install cameras to detect/prevent every occurrence. They need to institute a functional system that detects and handles repeat offenders. That might be as simple as a means for complaints to be lodged, investigated and acted upon. And when they find people acting like this, yes they do need to actually fire them.