Risky Business: A Three-Step Plan For Addressing Harassment By Nonemployees

Employers have long understood that they face potential liability when an employee is sexually harassed by another employee and they do nothing to prevent or fix the known problem. It is also true, but perhaps less well known, that similar liability can result when employees are harassed by customers, patients, or other nonemployees. Ignorance of this potential liability can be costly, but you can minimize your risks by following a simple three-step plan.

Ignoring Third-Party Harassment Can Be Costly

Two cases in recent years underscore this point. In 2012, the U.S. Equal Employment Opportunity Commission (EEOC) filed suit against a private healthcare facility in Virginia after a female employee complained that she had been sexually harassed by a resident. The employee complained to her supervisor about the harassment, but the employer failed to take proper corrective action. The employer ultimately settled that case by agreeing to pay $30,000 and agreeing to