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Hospitality Industry Vulnerability to Sexual Harassment litigation.

Hospitality industry employers are among the hardest hit when it comes to sexual harassment litigation. They are particularly vulnerable to claims of sexual harassment due to a number of factors including high employee turnover, a high ratio of female to male employees and the fact that many employees work in various, and sometimes in isolated, areas of a property throughout the day. As a result of two recent U.S. Supreme cases, however, there are specific steps employers can now take to reduce the potential for liability and high jury verdicts in sexual harassment cases.

Expanded Potential for Liability.

In the decisions of Farragher v. City of Boca Raton and Burlington Industries v. Ellerth, the U.S. Supreme Court reaffirmed existing law which provides that an employer can be liable for a supervisor’s sexual harassment of an employee where the employer had no knowledge of the supervisor’s harassing actions and also where the employee did not complain about the alleged misconduct.

The court also held that an employee does not have to sustain an adverse employment action as a result of the sexual harassment in order to bring litigation. Thus, an employee does not have to suffer a tangible injury such as a demotion, loss of promotion or termination; the mere fact that sexual harassment took place is sufficient to state a claim.

Employers Should Follow Prescription.

Notwithstanding these tough rulings for employers, the U.S. Supreme Court specifically found that an employer may still raise an affirmative defense to dismiss sexual harassment claims against it if it is able to show that: (1) it exercised reasonable care to prevent the sexual harassment from occurring and promptly sought to correct any sexual harassing behavior brought to its attention; and (2) the plaintiff unreasonably failed to take advantage of opportun-ities the employer provided to prevent or correct the alleged sexual harassment through a sexual harassment complaint process.

Take These Steps NOW! To take advantage of the affirmative defense available to employers, hospitality industry employers should take the following immediate steps:

Remember! Federal law holds employers liable for the sexual harassment actions of employees by independent contractors, customers and other non-employees. All your policies, practices and procedures should be developed with this in mind.

Time to Consider an HR Checkup?

Specializing in small company start-ups and the revitalization of established company programs, Outside the Lines, Inc. can help your company find the right path to take. We work with you to determine your exact needs and the steps required to achieve your goals. Each of our services are customized for your company and incorporate your core values, competencies, and culture.

Areas of consultation include:

• Interviewing & Hiring Systems
• Job Descriptions
• Orientation Systems
• Employee Handbooks
• Interviewing Skills Workshops

Call 707.319.2500 or visit OLTConsulting.com
for more information

Is YOUR company in compliance
with AB1825?

View our online Sexual Harassment Prevention Course Demo

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