What Every Small Business Owner Should Know About Sexual Harassment Claims

It's an unfortunate situation if it happens, but it's something you need to prepare for as a business owner

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The last few years have brought a sea change in our cultural conversation about sexual harassment. Ever since the beginning of the #MeToo movement, claims of sexual harassment have been treated, overall, with greater seriousness and gravity. Women and men from virtually every industry have become a bit more comfortable speaking out about their own negative experiences, all in the hopes of creating workplaces that are safer for everyone.

As a business owner, one of the last things you want is for your workplace to be rocked by a claim of sexual harassment… against you or against another employees. There are a few things every business owner should know about handling these claims if and when they come.

What is Sexual Harassment?

When we talk about sexual harassment, we’re talking about one of two different things:

  • Quid pro quo arrangements involve an employee’s professional development (including decisions about promotions, hiring, or firing) being affected by the employee’s submission to, or refusal or, sexual advances from a co-worker or superior.
  • Hostile work environments simply involve any workplace in which employees are made to feel unsafe or uncomfortable due to things like obscene gestures, vulgar jokes, or regular comments about the physical appearance of other employees.

In businesses of 15 or more employees, all team members are protected from these types of behaviors under Title VII of the Civil Rights Act. However, all companies benefit from taking steps to avoid quid pro quos and hostile work environments.

Steps to Avoid Sexual Harassment

There are some specific steps that small businesses can take to avoid instances of sexual harassment… and thus, to make it far less likely that any meaningful complaints are lodged. Note that the following guidelines are not intended as legal advice, and it’s always best to consult with your business attorney if you have specific questions or concerns.

  • Make sure your employee handbook is clear in stating that sexual harassment is not tolerated in your workplace. It’s crucial to have this in writing and to have employees sign off.
  • Establish a protocol for how complaints are handled. Make sure employees know who they should report it to. Ideally, you should provide a couple of different avenues, ensuring no employee has to report to someone who makes them feel uncomfortable.
  • If a complaint is made, take prompt action to speak with everyone involved, ensuring that the complainant truly feels heard. Keep the details of this investigation confidential!
  • Also remember that, as the boss, you can be proactive. If you see an employee who has a suggestive photo on their desk or in their locker, feel free to speak with them about it. No need to wait for an employee complaint.

Additional Tips for Small Business Owners

Business owners should also take to heart a few basic tips, should a complaint be made against them or one of their team members. Again, this isn’t intended as legal advice, so talk with your attorney if you need specific guidance. With that said, some general recommendations:

  • Make sure you adhere to your company’s written sexual harassment plan, which you should make in conjunction with an attorney or HR expert.
  • Provide the complainant with the resources they need, including options for a third-party investigation or mediation should they desire it.
  • Take action against any offending employees as you deem appropriate, whether that’s a verbal warning, a suspension, or termination. Communicate these outcomes to both parties involved.
  • Review and improve policies following any incident, seeking to create a work environment that is welcoming and open.

The bottom line: Sexual harassment claims warrant a serious and intentional response. Small business owners do well to have their response ready, even if they hope they will never actually need it.



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