Prompt Investigation Eliminates Punitive Damages
Prompt investigation of sexual harassment complaint avoids $1 million punitive damages.
Sexual harassment in the workplace is the source of significant liability for employers. An employer may be found liable for discrimination if it is notified of sexual harassment in the workplace and fails to take adequate remedial action. However, a firm company policy against harassment coupled with a prompt, thorough and unbiased investigation process brings important benefits for the employer.
In a recent appellate decision in Massachusetts1, the employee did not complain to the officials identified in the sexual harassment policy. Nevertheless when, the director of human resources and one of the officials responsible for investigating sexual harassment, became aware of the complaints, she immediately started the process and interviewed witnesses. The accusing employee was kept informed of the investigation and given several opportunities to participate, which she declined.
The jury found liability against both the perpetrator and the employer and awarded compensatory damages in a modest sum against the perpetrator and the employer, plus an additional $1,000,000 in punitive damages against the employer. After the conclusion of case, the trial judge eliminated the punitive damage award against the employer. The Court’s analysis focused on several factors, including the promptness of the employer’s response upon learning of the harassment, the thoroughness of the investigation, and the fact that the complaining employee did not participate fully in the investigative process. The appellate court upheld the trial judge’s decision and affirmed the elimination of the $1M punitive damages.
Employers should be clear that inquiry into the complaining plaintiff’s workplace behavior is always relevant to the investigation. The employer has the right to determine, for example, whether the conduct at issue was unwanted or unwelcome, which is a key component of a claim under both federal and state sexual harassment statutes. The key to success is that the investigation be handled by competent and properly trained in-house personnel, outside counsel with expertise in employment law, or a human resources consultant who specializes in such matters.
The Court’s ruling confirms that an employer can avoid direct liability and perhaps punitive damages, even when the sexual harassment involves a supervisor or manager, by implementing an appropriate anti-harassment policy and conducting prompt investigations following any complaints.
1 Trinh v. Gentle Communications (2008) 71 Mass. App. Ct. 368
Tags: policy against harassment, prompt investigations, unbiased investigation