Litigation
:: Publications
.: Articles
: Business Law
: Corporate Finance - M&A
: Franchise, Distribution, & IP
: Litigation
: Public Finance
: Real Estate
: Taxation
: Wealth Preservation
: Advisory Services
.: KM Outlook
.: Resources
.: Newsletters
Employers’ Response to Sexual Harassment «BACK
by Phillip R. Krass  
  from Krass Monroe, PA  
   
     
Take the high pressure businesses of today. Add an increasing percentage of female employees, often being managed by men. Throw in working conditions that often include close quarters and the need for speed. Drop all of that into the 1990s and you have a recipe for one of the fastest growing tort claims in the nation--sexual harassment.

Our firm has seen more sexual harassment claims in the restaurant industry in the last five years than in the previous 25. These suits are difficult and expensive to defend because there is often some truth in the allegations of harassment, which generally, but not always, involve a female employee against a male employee or supervisor. But you are not without preventive measures to take to try to minimize the risk of such a claim in your restaurant.

First and foremost, your company must have a written sexual harassment policy. The policy must unequivocally state that your company will not tolerate sexual harassment in form by any employee at any level. The policy should also indicate clearly to the employees the lines of communication open to them should such harassment occur. It is very important, if at all possible, to provide female employees with a sexual harassment complaint the option of speaking to a female manager as opposed to a male. Phone numbers should be provided in your policy, and every employee should receive and sign for a copy of that policy. That phone number should also be prominently displayed in appropriate places.

An ounce of prevention may be worth more that a pound of cure in this area.

If sexual harassment is reported to you or if you receive any indication that it may be occurring, take immediate action. Institute an investigation, and if warranted, take action against the harasser. Even if the harassment has stopped as a result of the investigation, some punishment is generally warranted to deter further harassment.

During your investigation, make sure you document your file. The investigator should be taking notes and perhaps taping interviews with the parties involved and with the potential witnesses, and even if you determine there is no basis for the complaint, keep all these written and recorded materials in a secure location. If you decide not to take action, document the file for the reasons and indicate how you have conveyed that information to the parties in question.

Demonstrate your commitment to a harassment-free workplace by keeping this matter before your senior managers. Reiterate your company's policies at staff meetings and consider sending top management to sensitivity training. Men in particular have some serious difficulty understanding the nature and effects of sexual harassment against women, and failing to understand can lead to mistakes that can be very, very costly.

Recent figures show the number of harassment cases filed with the Equal Employment Opportunity Commission to be doubling annually. Statistics indicate 15% of all female employees experience sexual harassment in any given year. This is a growing issue and a growing source of cost to employers, particularly in the service area, and a growing diversion of energy for employers and managers..

Assuming sexual harassment can't happen in your workplace will be a grave and costly error.

The cost of sexual harassment claims to your company can be monumental. These are lawsuits that often don't go away because of the anger and feeling of a need for vindication on the part of the claimant. The direct costs of litigation are always high and in addition these types of claim eat up significant amounts of emotional energy from everyone involved, and often create serious morale problems within your company. Those accused often fail to understand what has happened, other employees feel that the claim is either unfair and should not have been made, or the claim is correct and the conduct should have been prevented. Moreover, the public relations impact of these claims, while not necessarily measurable, is often very significant. An ounce of prevention may be worth much more than a pound of cure in this area.

We at Krass Monroe have significant experience in dealing with sexual harassment issues. We can assist you in drafting and implementing a sexual harassment policy and establishing appropriate internal procedures for dealing with sexual harassment complaints. In the event an allegation is made, we can assist and advise you in conducting an appropriate investigation. Finally, in the event a complaint is filed, we can respond to and work with the appropriate government agency in an attempt to limit or eliminate employer liability.