Third Party Harassment Liability Heightened by Recent Federal Court Ruling

A recent federal court decision has raised the standard for employers when handling harassment committed by customers, vendors, contractors, or other non-employees. The court closely examined what the employer knew or reasonably should have known, as well as how effectively the company responded. The ruling makes it clear that employers can still face liability when they control the work environment and fail to take reasonable steps to stop the misconduct.

What This Means for HR

Employers should ensure that harassment policies explicitly address conduct by and against third parties, including customers and contractors.

Organizations must also reinforce complaint handling procedures so frontline staff know how to escalate reports quickly and leadership can take prompt corrective action.

HR Consulting Group can assist with updating policies, conducting trainings, and strengthening complaint response protocols to help protect both employees and the organization.