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AN EASY, EFFECTIVE PREVENTIVE LAW TECHNIQUE:
COMPLAINT PROCEDURES FOR DISCRIMINATION
AND HARASSMENT CLAIMS

A crucial strategy in preventing employee harassment claims, particularly sexual harassment claims, is this: Set up a complaint procedure that complies with the law. If you do, and if an employee fails to use it, the employee's claim will generally be dismissed, whether or not the employee was actually harassed.

Georgia Woods worked for Delta Beverage as a telephone sales clerk. Woods alleged that a fellow employee, Gary Eddy, sexually harassed her on a daily basis. Woods complained, and Delta Beverage's district managers investigated the complaint. They informed Eddy that his conduct was inappropriate and would result in termination if it continued. They then told Woods that she should notify them immediately if Eddy engaged in further improper conduct. One of the district managers followed up with Woods thereafter to make sure that she was satisfied with the investigation and disposition.

After two more weeks, Woods stopped reporting to work and, eventually, she filed suit against Delta Beverage, claiming that during the two-week period after the initial investigation, Eddy continued to sexually harass her. She claimed that she was forced to work in a hostile environment, and she had no choice but to leave, for her own well-being. For purposes of argument, the court was willing to assume that Eddy continued to harass Woods in the two weeks previous to her departure. But the court then ruled as follows, in language that every employer must take to heart:

Even so, Delta Beverage cannot be held liable for conduct of which it had no knowledge. Woods had the obligation to report the alleged harassment to Delta Beverage as she had been instructed. Her failure to do so is fatal to her case.

Delta Beverage would not have prevailed unless it clearly instructed Woods respecting its complaint procedure. In many cases, however, the harassed employee will deny that he or she was ever made aware of the existence of a complaint procedure. For that reason, the best solution is always to create a written complaint procedure that satisfies the law - the United States Supreme Court, and other courts, have set forth the specific features that must be included in such a procedure, and specific guidelines on how the procedure has to be implemented. Once you do that, your employee will be hard pressed to plead the "I didn't know" defense.


Powell, Trachtman, Logan, Carrle & Lombardo, P.C. is a full service law firm with offices in suburban Philadelphia, PA, Harrisburg, PA and Cherry Hill, NJ. Powell Trachtman represents a variety of commercial enterprises, entrepreneurs and business executives in respect to their litigation, litigation avoidance planning, business formation, business transactions, estate and tax planning, and other needs. We are also approved defense counsel for numerous insurance carriers in matters pertaining to professional malpractice, products liability, employment practices, directors and officers liability, and many other fields. For more information, contact us at info@powelltrachtman.com and visit our website at www.powelltrachtman.com.

©Copyright 2004 Powell, Trachtman, Logan, Carrle & Lombardo P.C. All rights reserved, except that recipients hereof are permitted, for noncommercial purposes, to provide copies or excerpts, with full attribution to us, to other interested persons for their personal use. Avoiding Lawsuits is distributed for general informational purposes only. It is not a substitute for personalized legal advice from a competent attorney.

Problems Prevented and Solved

Acquisition, financing and development of manufacturing facility - read more

Successful resolution of gender and race discrimination claim - read more

Successful defense in architectural malpractice claim involving medical facility - read more

Six-figure settlement for manufacturing firm against consultants - read more

Negotiation and finalization of software transfer transaction - read more

Successful settlement of action against architect in multi-phase condominium project - read more

Successful resolution of sexual harassment claim - read more

$37 million verdict in contractor/municipality dispute - read more

Successful resolution of multi-million dollar hotel water intrusion/mold growth claim - read more

Creative estate tax planning for the owner of a Subchapter S Corporation - read more

Successful settlement of architectural malpractice claim in roof collapse case - read more

Successful defense of employee's pregnancy discrimination and family leave act claims - read more

Successful resolution of quadriplegia personal injury claim against college - read more

Successful defense of unfair competition action - read more

Successful defense of computer hardware manufacturer - read more

Successful resolution of claim against architectural firm involving design of concert hall - read more

Successful negotiation with the IRS to eliminate mounting interest and penalties for estate heirs - read more

Representation of manufacturing entity in asset-based lending transaction - read more

Successful resolution of shareholder buy/sell claim - read more

Successful representation of design professional in historic building damage claim - read more

Successful resolution of claim by business buyer against business seller - read more

Defense verdict in favor of lift manufacturer - read more

Negotiation of a multi-million dollar statewide strategic sourcing contract - read more

Representation of retail distributor in acquisition of store locations - read more

Updating estate planning documents reveals major flaws - read more

Successful enforcement of covenant not to compete - read more

Examples of "preventive law" advice provided to clients - read more

Acquisition of industrial property requiring environmental remediation - read more

Successful defense of electrical product manufacturer - read more

Successful settlement in favor of architect on highway design claim - read more

Successful resolution of a deficient design claim for a designer and construction manager of a warehouse distribution facility - read more

Creation of ESOP as part of founder's succession plan - read more

Defense verdict for accounting firm in "deepening insolvency" case - read more

Representation of numerous companies in structuring reductions in force - read more

Representation of company in the negotiation and drafting of executive employment agreements - read more

Defense verdict in whistleblower/wrongful termination claim - read more

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