Your company works very hard to avoid workplace discrimination claims. Stacks of policy & procedure manuals and hour upon hour of employee training testify to this. But your employees don’t operate in a vacuum. What if a third party, such as a customer or supplier, harasses an employee? Are you legally responsible? Your liability may depend upon your response.

Workplace Harrassment Defined

Federal law, and the law of most states, provides that employers may be responsible for the acts of third parties with respect to the harassment of employees in the workplace. Such harassing conduct violates Title VII of the Civil Rights Act of 1964 when it has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive working environment. Readers should note that these principles apply not only to sexual harassment, but also to harassment on the basis of race, color, religion or national origin.

The Equal Employment Opportunity Commission (“EEOC”) says an employer may be responsible where the employer, or its agents or supervisory employees, knew or should have known of the unlawful conduct and failed to take immediate and appropriate corrective action. This standard is similar to the one used for allegations of co-worker harassment, but the EEOC will additionally consider the extent of the employer’s control over the third party and any other legal responsibility which the employer may have with respect to the conduct of the non-employee.