The Law Column: Are you ready to deal with harassment complaints in 2025?

A New York jury in April 2025 awarded $1.68 billion in damages to 40 women who accused Oscar nominated movie director James Toback of sexual abuse and other crimes over a span of 35 years. Toback allegedly lured young women on the streets of New York into meeting him by falsely promising roles in his films and then subjecting them to sexual acts, threats, and psychological coercion. It one of the largest jury awards since the advent of the #MeToo movement. $1.4 billion of the award was for punitive damages to the plaintiffs. (Note: Toback apparently represented himself and allowed a default judgment to be entered against him so the trial was for damages only). Other large verdicts around the country indicate juror’s dislike of systematic workplace abuse.

What is most disturbing from a legal standpoint is that many of the recently reported incidents were known by management or a board of directors to have occurred, yet it appears management found it convenient to ignore the inappropriate and unwelcome behavior. The “ostrich” defense — burying your head in the sand and ignoring everything — will never work in front of either a judge or a jury. Employers will be held accountable for their actions, or inaction as the case may be.

Are you prepared to properly deal with a harassment complaint in your workplace? The good news is that employers can take many measures to mitigate damages and embarrassing litigation. The law is clear that you have a duty to investigate complaints of inappropriate workplace behavior and conduct based on a protected class status, and if substantiated, you must take prompt and reasonable corrective action. You may have a duty to investigate even if you do not receive a complaint. For example, if you receive information (e.g., rumors, gossip of unwelcome conduct) that gives you some knowledge of a problem then you have a duty to investigate. The law also holds employers accountable when either the conduct was so obvious, the employer “should have known” or the conduct was reported to someone deemed to be a manager with a duty to act.

A prudent employer will have a well-written policy prohibiting harassment and retaliation which includes multiple channels for reporting complaints, need-to-know confidentiality assurances, and protections against retaliation for victims and witnesses. Moreover, the employer must provide appropriate training to employees and management about its policy, and the obligations of employees and management in maintaining a harassment-free workplace.

When was the last time you reviewed and reissued your policy? When was the last time you conducted training for employees and your management? Should you do something before the company's holiday parties or other social gatherings (especially involving alcohol, these are frequent sources of harassment complaints)? When determining your goals for your company, make sure you give attention to you harassment policy and training, not only because it is your legal obligation, but because harassment in any form reduces employee productivity and increases turnover.

Wilford H. Stone is a lawyer with Lynch Dallas in Cedar Rapids. Comments: (319) 365-9101; wstone@lynchdallas.com.