Failing to address harassment can cost employers

When it comes to sexual harassment allegations, no employer wants to find itself in the position an Indiana university was in during the 1990s, when a woman complained to a senior administrator that the school’s chancellor had groped her.

“Oh, no, not again,” said the administrator at Indiana University’s South Bend campus.

A jury awarded the woman $800,000.

Although a judge later slashed that to $50,000, the message was clear: Failing to address allegations of sexual misconduct in the workplace can have expensive legal consequences for employers. Earlier this year, a former University of California, Santa Cruz student who alleges she was raped by a professor settled her claim against the university system for $1.15 million over what she says was its failure to address previous allegations of sexual harassment and sexual violence by the faculty member.

It is with that reality in mind that companies are swiftly firing powerful men accused of misbehavior and taking a zero-tolerance attitude toward such wrongdoing. But whether a no-mercy approach is a good idea is a matter of debate.

While businesses are usually within their rights to swiftly fire employees accused of misconduct, as was done this week with former “Today” show host Matt Lauer and former “Prairie Home Companion” personality Garrison Keillor, such actions can also backfire, legal experts say. For example, they say, women who just want the harassment to stop and don’t want to see anyone get fired might hesitate to come forward.

Philadelphia-based employment attorney Jon Segal said zero tolerance for harassment is important, but the consequences should be commensurate with the offense and should include steps short of firing, such as mandatory training, suspension or demotion.

For employees who choose to sue, the timeframe can be short for raising the allegation: 300 days if employees want to sue in federal court. States often have more generous deadlines — six years in Ohio, for example — and fewer caps on financial damages.

Time limits don’t mean lawsuits can’t be brought over older complaints of harassment. For example, employees can argue that a recent incident within the 300day limit allows them to revisit an older complaint outside that window. Employers can also inadvertently breathe new life into old complaints by threatening employees with retaliation.