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In a decision that could increase
an employer's legal exposure to sexual harassment charges, the Supreme
Court last month ruled that an employer can be held vicariously liable
for acts of its supervisors. The 7 to 2 ruling came in Faragher v. City
of Boca Raton, Florida, No. 97-282, involving a female part-time lifeguard
who claimed her supervisors subjected her to uninvited and offensive touching
as well as lewd comments. She also alleged that one of the supervisors
had pantomimed various sex acts in her presence. The city had adopted a
sexual harassment policy but neglected to disseminate it to the marine
safety division where the lifeguards worked. Beth Ann Faragher apparently
never brought the matter to the attention of senior city officials. The
city subsequently suspended two of the supervisors following the complaint
of another female lifeguard. A U.S. District Court ruled that the harassment
was pervasive enough to support an inference that city officials knew of
the behavior and that the supervisors were acting as the city's agents
when they committed the harassing acts. The court awarded Faragher one
dollar in nominal damages.
On appeal, the full Eleventh Circuit court reversed, finding that the
supervisors were not acting within the scope of their employment and, thus,
liability could not be placed on their employer.
Justice David Souter, writing for the Supreme Court majority, noted
that supervisors have special authority enhancing their ability to harass,
and an employer has greater capacity to guard against misconduct by supervisors
than by common workers. Thus, the supervisor's misconduct can reasonably
be imputed to the employer.
A 1986 Supreme Court decision held, |
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however, that an employer
is not "automatically" liable under federal fair employment laws for the
harassing conduct of a supervisor. The court reconciled this decision by
creating an affirmative defense for employers. To avoid liability for the
supervisor's sexually harassing conduct, an employer must show it exercised
reasonable care to avoid or eliminate harassment and that the complaining
employee failed to take advantage of the employer's safeguards or take
reasonable care to prevent harm. Justice Souter noted that the first requirement
could be met by the existence of a stated anti-sexual harassment policy.
The second burden is met when the employer demonstrates that the aggrieved
employee failed to utilize an existing complaint procedure. But, the Justice
cautioned, "No affirmative defense is available, however, when the supervisor's
harassment culminates in a tangible employment action, such as discharge,
demotion, or unsuitable reassignment."
The court reinstated the original judgment, finding that the record
supported the conclusion that the employer had not taken the steps necessary
to qualify for the affirmative defense.
The decision appears to put public and private employers on notice that
sexual harassment by a supervisor attaches liability to the employer unless
proactive measures have been taken. To avail itself of the defense developed
by the Supreme Court, personnel experts suggest an employer adopt a formal
written policy prohibiting sexual harassment, the policy be distributed
to all employees, and a meaningful procedure be in place for the reporting
of workplace misconduct. In addition, the cautious employer will remind
personnel of the policy on a periodic basis and permit the reporting of
sexual harassment outside of the |
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