| THE
IMPORTANCE OF HAVING A SEXUAL HARASSMENT
POLICY AND COMPLAINT PROCEDURE
By
Monte Fried, Esquire, Managing Partner,
Wright, Constable & Skeen, L.L.P.
Although
settled quickly with no admissions of fault by either side, the
October 2004 sexual harassment lawsuit filed by a former employee
against Bill O’Reilly, host of the O’Reilly Factor,
drew a substantial amount of attention in the TV media and press.
It has been reported that the lawsuit has increased O’Reilly’s
television audience by 30%, and the lawsuit ultimately benefited
O’Reilly and his employer-Fox News. This is not the usual
result---employers do not generally benefit when sued for sexual
harassment.
Under Title
VII of the Civil Rights Act, an employee cannot be held personally
liable for sexual harassment which he or she may have committed---but
the employer can. If held liable, the employer can be required
to pay attorneys’ fees, back-pay, front-pay, and compensatory
and punitive damages ranging from $50,000 to $300,000 depending
on the employer’s size. Whether an employer will be held liable
depends on the harassing employee’s position, the type of
sexual harassment which has occurred and what steps, if any, the
employer has taken to avoid and correct such harassment.
There are two
recognized types of sexual harassment under Title VII:
Quid
pro quo sexual harassment – where (1) an employee
is subjected to unwelcome sexual requests or conduct, (2) the employee’s
reaction to this harassment (refusal, indignation, avoidance, ignoring)
results in an adverse tangible employment action
(demotion, termination, denial of promotion, transfer to an undesirable
job), and (3) the employer knew or should have known about the harassment
and took no effective remedial action.
Hostile
work environment – where (1) an employee is subjected
to unwelcome conduct which was based on the employee’ sex,
(2) the conduct was sufficiently pervasive or severe to alter the
conditions of employment and create an abusive working environment,
and (3) some basis exists for imputing liability to the employer.
In assessing whether an environment is objectively sufficiently
pervasive or severe to alter the conditions of employment, the courts
consider all of the circumstances, including the frequency of the
discriminatory conduct; its severity (words vs. actions); whether
it is physically threatening or humiliating, or a mere offensive
utterance; and whether it unreasonably interferes with an employee’s
work performance.
EMPLOYER
LIABILITY
Usually it is
only a supervisor that commits quid pro quo harassment,
since a supervisor has the ability to effectuate or cause the adverse
tangible employment action. Knowledge is automatically imputed
to the employer, and the employer will be liable for damages.
Likewise, if hostile work environment discrimination is committed
by a supervisor and includes a tangible employment action, the employer
will automatically be liable for the supervisor’s discrimination.
However, even
when an employer is liable for its supervisor’s quid pro quo
or hostile environment discrimination, if the employer can
show that it has implemented policies and procedures designed to
avoid or eliminate sexual harassment, it can avoid punitive damages.
The courts have held that the existence of a sexual harassment
policy and complaint procedure is evidence of an employer’s
good faith efforts to comply with Title VII and can result
in the employer not being liable for punitive damages.
If hostile work
environment discrimination is committed by a supervisor and does
not include a tangible employment action, the employer can avoid
liability if it establishes a two-part affirmative defense: (1)
that it exercised reasonable care to prevent and promptly correct
any sexually harassing behavior and (2) that the
plaintiff employee unreasonably failed to take advantage of any
preventive or corrective opportunities provided by the employer.
Distribution of an anti-harassment policy has been held
by the courts to constitute “compelling proof” that
a company has exercised reasonable care in preventing and correcting
harassment. The existence of a sexual harassment policy and complaint
procedure is critical to the employer successfully establishing
this affirmative defense and avoiding liability.
If hostile work
environment discrimination is committed by a co-employee, the employer
is liable if it knew or should have known about the sexual harassment
and took no action. Under this rule, courts have held that an employer
can be charged with constructive knowledge of the co-worker’s
harassment where it fails to provide reasonable procedures for victims
to register complaints. On the other hand, where an employer
has set up a sexual harassment policy and complaint procedure and
promptly addressed discrimination brought to its attention, the
employer has not been held responsible for co-employee sexual harassment.
In short, it
is clear that the existence and promulgation of a sexual harassment
policy and complaint procedure which calls for a prompt investigation
and appropriate discipline is essential in defending against sexual
harassment actions brought against an employer. Drafting and promulgating
such a policy and complaint procedure can be done quickly and inexpensively,
and the benefits of having such a policy and procedure—avoiding
or reducing monetary liability--far outweigh any incidental costs
connected with implementing the policy.
Reprinted
with the permission of Wright, Constable & Skeen, L.L.P.
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