Legal Liabilities and Company Responsibilities in Addressing Sexual Harassment

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In today’s world, fostering a safe and inclusive workplace is not just a matter of good ethics but also a legal requirement. It also helps foster a healthy positive environment for employees where they can feel safe. 

Sexual harassment and workplace harassment remains a pervasive issue in workplaces worldwide, and companies must be vigilant in preventing and addressing it. Failing to do so can lead to significant legal liabilities. There are numerous legal liabilities a company can face related to workplace harassment and we can help your company create steps to mitigate these risks.

Understanding Sexual Harassment

Sexual harassment and harassment in the workplace is defined as unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature that interfere with an individual’s work performance or create a hostile work environment. It can take various forms, such as:

Quid Pro Quo Harassment: This occurs when a person in authority requests sexual favors in exchange for job benefits, such as promotions or job security.

Hostile Work Environment: A hostile work environment arises when unwelcome sexual conduct creates an intimidating, offensive, or hostile workplace environment that affects an employee’s ability to perform their job effectively. This can include sexually harassing words at work, actions or advances.

A hostile work environment must be objectively severe and pervasive to arise to such a level which is considered work-site harassment. This can also include sexual assault at work. This can include jokes and humor related to sex or emails or messages. It can also include advances for an individual to enter into a relationship with another. 

Typically, one single incident may not be enough to arise to a level of severe and pervasive actions of worksite harassment but every circumstance is different. A single situation regarding sexual assault as opposed to an off-color joke could rise to the level of severe and pervasive conduct.

Also, in many circumstances, a victim may have to communicate an off-color joke or sexual communication that is unwanted to help prove that such communication was unwanted at that time and the employee did not engage in the same type of communication to show that it was in fact wanted behavior.

Sexual harassment not only includes actions that may be sexual in nature, but can also include communication, jokes, statements or actions based on that person’s gender.

Retaliation: Retaliation with sexual harassment is when a company takes adverse action against an employee for opposing sexual harassment in the workplace or being  part of an investigation with the EEOC or other state agencies involving a sexual harassment claim. Adverse action can include things such as a change in hours or title, or work responsibilities or loss of a promotion opportunity or terminating that person.

Legal Liabilities

Title VII of the Civil Rights Act of 1964: In the United States, Title VII prohibits sexual harassment in the workplace. Companies that fail to address complaints or foster a hostile work environment can be held liable under this federal law. Companies may also be held liable if the harasser at work was a manager depending on the position of the manager without needing

State and Local Laws: In addition to federal law, many states and local jurisdictions have their own laws governing sexual harassment and worksite harassment, including Utah. Companies must be aware of and comply with these regulations to avoid legal trouble.

Lawsuits: Victims of sexual harassment and worksite harassment on the job can file lawsuits against their employers, seeking damages for emotional distress, lost wages, and legal fees. Companies that do not take appropriate action may be found liable for these damages or if an individual that committed the sexual harassment was from an individual that had a title so high in the company, it could be said that the company through its executive committed sexual harassment on that individual.

EEOC Charges: Employees can also file complaints with the Equal Employment Opportunity Commission (EEOC) for worksite harassment, triggering investigations that may result in legal actions against the company. The complaint must be filed within 300 days of the last act if it happened in Utah. Even if the EEOC makes a non-finding of sexual harassment, an employee will still be able to file a lawsuit in federal court within 60 days of the non-finding. 

Damages: An employee who was harassed on the job can recover past and future lost wages and benefits related to the worksite harassment. An employee getting harassed at work can also recover past and future emotional pain and suffering related to the incident if the employee can prove such damages. An employee, including female employees harassed at work can also recover past and future medical expenses if applicable related to sexual worksite harassment. 

An employee can also have its attorneys fees and costs reimbursed if it prevails on a sexual harassment claim. 

A prevailing employee on sexual harassment in can also have a penalty fee imposed against a company to deter the company from future harassment and to punish it for its actions from the incident with the employee. There is a cap on the amount this penalty fee can be that depends on the size of the company with the amount of employees it has.

A company may also be ordered to do other specific things from a judge, including training its employees and or changing its policies as it relates to sexual harassment to ensure it doesn’t happen again.

Reputation Damage: Beyond legal consequences, companies that fail to address sexual harassment allegations can suffer significant reputational damage, impacting their brand image and employee morale and its ability to attract competitive employees. This can affect contracts or future contracts with vendors and third parties it may have.

Preventing Sexual Harassment in the Workplace

To mitigate legal liabilities and create a safe workplace, companies should take proactive steps to prevent sexual harassment:

Implement Clear Policies: Develop and communicate a comprehensive sexual harassment policy that outlines unacceptable behavior and provides clear reporting procedures.

Employee Training: Provide regular training to employees and supervisors on recognizing, preventing, and reporting sexual harassment.

Reporting Mechanisms: Establish confidential and accessible channels for employees to report harassment complaints and ensure they are taken seriously and investigated promptly.

Investigation Protocols: Develop a fair and impartial investigation process for addressing complaints, involving Human Resources “HR” professionals or external experts when necessary.

Accountability: Hold individuals who engage in harassment accountable for their actions, and ensure appropriate disciplinary measures are taken.

Culture of Respect: Foster a workplace culture that values respect, diversity, and inclusion, making it clear that harassment will not be tolerated.

Sexual harassment poses significant legal liabilities for companies, including lawsuits, fines, and reputational damage. To protect themselves and their employees, organizations must take proactive steps to prevent and address harassment. By establishing clear policies, providing training, and fostering a culture of respect, companies can reduce the risk of legal repercussions and create a safer, more inclusive workplace for all. Addressing sexual harassment isn’t just a legal obligation; it’s a moral imperative that benefits both employees and the organization as a whole.

Some companies may not have thought out its policies or had issues related to sexual harassment yet. Our experienced law firm can help provide the training and assistance your company needs to ensure that it is and remains legally compliant.

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