HR Management & Compliance

Sexual Harassment: New Law Makes All Employees Personally Liable; Action To Take Now

A bill just signed by Gov. Davis significantly raises the stakes in harassment cases by making all employees who harass co-workers potential targets of a lawsuit. We’ll focus on how the law has changed and the impact it may have on you and your workers.

Law Expands Liability

Under A.B. 1856, which takes effect Jan. 1, 2001, all employees can be sued and held personally responsible for harassment they commit. This is true regardless of whether their employer knew or should have known about the conduct and whether the employer took corrective action. Previously, under the California Fair Employment and Housing Act, only employers and their managers and supervisors, could be sued for harassment.

Applicable To All Types Of Harassment

The law applies to a wide range of illegal conduct, including harassment based on race, religion, national origin or ancestry, physical or mental disability, medical condition, pregnancy, marital status, age or sexual orientation. However, it does not cover employees of religious organizations or nonprofit corporations.


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Impact On Employers

Although it’s too soon to tell what the fallout will be from the law’s expansion of liability, the number of harassment lawsuits is certain to increase.

What’s more, the specter of personal liability may well prompt more employees to invoke the recent National Labor Relations Board ruling allowing them to bring a co-worker to meetings that could result in disciplinary action, including those involving the investigation of harassment complaints. The fact that an employee faces a potential lawsuit makes it more likely that their attorney will advise them to bring along a co-worker as a witness.

Making Employees Aware

On the one hand, the passage of the new law presents an opportunity to heighten your employees’ awareness of the serious consequences of harassment by conducting refresher training, and updating and reissuing your anti-harassment policy.

On the other hand, it’s important to consider how strongly you want to emphasize to employees that they can now be personally liable for illegal acts they commit, since this information could trigger unfounded claims by co-workers.

Consequences Of Personal Liability

Because of the new law, harassment charges are more serious than ever. A harassment complaint not only puts a worker at risk of getting fired, but could also force them to hire an attorney and face losing their personal assets if they are sued and found liable.

 

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