Employer liability for third-party sexual harassment

Abstract

While most employers understand the scope of their responsibility to prevent sexual harassment between employees, the scope of an employer's responsibility to prevent sexual harassment by third parties is often less clear. Such third parties may include customers, clients, sales representatives, vendors, investors, or anyone in the workplace who is not a member of the employer's workforce. Although an employer may be unable to easily control non-employee actions, it is legally obligated to respond to any third-party sexual harassment of its employees that is brought to the employer's attention. With proper safeguards and remedial action, however, an employer can keep its employees safe from third-party sexual harassment and protect itself from liability in the process. This Q&A explains employer liability for third-party sexual harassment, describes the ramifications of an employer's failure to properly address or prevent it, and recommends strategies to reduce an employer's legal exposure.