In a case that illustrates the danger of being accused of not fully investigating or taking remedial action that is too little or too late, an Orange County jury recently returned a seven-figure verdict for an auto club employee who complained about sexual harassment. We’ll explain how the Automobile Club of Southern California got into trouble, and we’ll suggest practical steps you can take to cut your risks.
Insurance Agent Reports Harassment
Jean Graham, an insurance agent with the AAA Southern California affiliate, complained that a male co-worker sexually harassed her over a period of three years by repeatedly making sexually charged comments and offensive and intimidating gestures. After investigating, the Automobile Club suspended the male co-worker for three days, issued a final written warning and moved his workstation three cubicles away from Graham’s, according to her attorney, Cecil E. Ricks Jr.
But Graham claimed the harassment continued, and she took a medical leave of absence for stress. She refused to return to the office because she said contact with the harasser would have continued.
Graham sought a transfer and interviewed for a position at another office, but the Automobile Club refused to transfer her or the co-worker, her lawyer said. When Graham didn’t come back to work at the end of her leave, she was terminated.
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Employee Files Lawsuit
Graham sued, claiming the Automobile Club failed to adequately investigate and take appropriate action on her complaints. She also charged that it retaliated against her by refusing to agree to a transfer and then firing her.
Employer Says It Took Action
The Automobile Club argued that the male co-worker’s actions weren’t severe or pervasive enough to create a hostile work environment. George W. Abele, an Automobile Club attorney, told that Graham didn’t bring the alleged incidents to management’s attention when they first occurred. Once Graham reported the alleged harassment following an altercation with her co-worker, the Automobile Club investigated and took immediate action, including disciplining and moving the male employee. And following the investigation, the company said Graham failed to report any further harassment.
The employer also argued that although the co-worker may have been rude to Graham in subsequent interactions, that didn’t amount to harassment.
Apparently believing the Automobile Club’s response didn’t go far enough, the jury found in favor of Graham on her claims of sexual harassment and retaliation. It awarded her $1,266,877, which included $600,000 in punitive damages. The Automobile Club is appealing the verdict.
Responding To Complaints
Here are some guidelines to follow when an employee complains about sexual harassment:
- Take effective remedial action. If a thorough investigation reveals an employee’s possible misconduct, act quickly to correct the problem and prevent continuing disputes. Do so even if you’re uncertain whether the conduct rises to the level of illegal harassment.
- Follow up with the victim. Check with the employee who reported the harassment to be sure the offending conduct has stopped.
- Consider transfer requests. It may not always be convenient to transfer the employees involved, but this may be the most effective corrective measure. It’s best not to reassign the victim to a new position if they object. But if the person asks to be transferred, try to accommodate their request if at all possible.