Sex Harassment Lawsuit by employee, please help!!

[SeanMurphy]

What is the name of your state (only U.S. law)? CA

This is a small company. We hired 2 employees. The guy was hired about 1 year ago, his position is entry level. The lady was hired early this month. The guy was in interview of the lady -- it's a small company, everyone interviewed her. She also clearly knows that I am the owner of the company.

She showed up in office the first day, but didn't show up the 2nd day. In early afternoon, an attorney called me about "serious sex harassment". I had to find an attorney, and this is what my attorney told me after talking with hers: she wants money. I had no idea about anything until her attorney called.

She claimed that the guy was "the owner" of the company and filed lawsuit against the company.

Whether or not the guy was at fault, can anybody suggest what's our best response? The attorney is charging $360/hr and that's why I am here to seek for advice.

She has no previous record for such cases.

She claimed:
- Repulsive sniffing and touching in office
- Masturbation, in office, next to her, while doing training

As a small company with just a few employees, I assume my office is somehow open environment.


Thanks for your help in advance

 

[mlane58]

What is the name of your state (only U.S. law)? CA

This is a small company. We hired 2 employees. The guy was hired about 1 year ago, his position is entry level. The lady was hired early this month. The guy was in interview of the lady -- it's a small company, everyone interviewed her. She also clearly knows that I am the owner of the company.

She showed up in office the first day, but didn't show up the 2nd day. In early afternoon, an attorney called me about "serious sex harassment". I had to find an attorney, and this is what my attorney told me after talking with hers: she wants money. I had no idea about anything until her attorney called.

She claimed that the guy was "the owner" of the company and filed lawsuit against the company.

Whether or not the guy was at fault, can anybody suggest what's our best response? The attorney is charging $360/hr and that's why I am here to seek for advice.

She has no previous record for such cases.

She claimed:
- Repulsive sniffing and touching in office
- Masturbation, in office, next to her, while doing training

As a small company with just a few employees, I assume my office is somehow open environment.


Thanks for your help in advance

She doesn't have any cases that went to court or were filed that you know of, but may have sucked monies out of unsuspecting small business owners like yourself through blackmail tatics. That's all your attorney said? If so, you need to find one that put this to bed. I would ask about specifics and any sustantial proof she thinks she has and then tell her and her attorney to either file or go pound sand.

 

[commentator]

The term "open environment" in this kind of situation usually means the act was done in a public place, where others could see what was going on, or be aware of it. What are you meaning about your office being an open environment? "Whether or not the guy is guilty" sounds a lot like the guy, one of the two of you is guilty. EEuuww.

But if you just decide to give her money unofficially to go away, that would be her blackmailing you. She might continue to do so even after you had paid her once.

But if she actually files a sexual harrassment suit at least it will have to be cleared up, and what money you owed would be what you owed, legally. I'd go for letting her sue.

But hang on to your attorney. Him/her charging you too much right now is the least of your worries. If you (or your other employee) has been a really really stupid masturbator and sniffer, it may very well cost you a whole lot more than this before it is over.

 

[SeanMurphy]

Mlane58, Commentator, thanks for your reply.

My confusion is why she filed lawsuit against the company instead of the other entry level employee? What's the fault of the company? For any reason that the company may lose the case?

"Open" means the office is small and everyone can clearly know what's going on next door. I also said in original post that I had no idea what's going on until the attorney called. I don't comment on right/wrong because my attorney told me not to do so.

 

[cyjeff]

Mlane58, Commentator, thanks for your reply.

My confusion is why she filed lawsuit against the company instead of the other entry level employee? What's the fault of the company? For any reason that the company may lose the case?

Because a lawsuit is about money. The company is perceived to have more money.

There are also legal precedents that have determined the company to be liable when certain practices are permitted in the workplace.

Now... you didn't even know this was going on and were given no opportunity to remedy the situation. Until you receive a EEOC inquiry, don't worry about it.

"Open" means the office is small and everyone can clearly know what's going on next door. I also said in original post that I had no idea what's going on until the attorney called. I don't comment on right/wrong because my attorney told me not to do so.

Yeah... did you talk to "Spanky" about his behavior and what was said? Your best defense will be to show diligence in determining whether or not this behavior actually happened and that, if it did, you acted to remedy the situation.

 

[SeanMurphy]

Thank you. Your reply is very helpful.

Because a lawsuit is about money. The company is perceived to have more money.

There are also legal precedents that have determined the company to be liable when certain practices are permitted in the workplace.

Now... you didn't even know this was going on and were given no opportunity to remedy the situation. Until you receive a EEOC inquiry, don't worry about it.



Yeah... did you talk to "Spanky" about his behavior and what was said? Your best defense will be to show diligence in determining whether or not this behavior actually happened and that, if it did, you acted to remedy the situation.

 

[Beth3]

My confusion is why she filed lawsuit against the company instead of the other entry level employee? What's the fault of the company? For any reason that the company may lose the case?

She filed the lawsuit against the company because you are (supposedly) the entity with the deep pocket. She's not going to get a dime out of suing the alleged harasser.

Nobody can advise you on the merits of this case except your attorney. Perhaps this new employee has made a living out of suing companies for bogus SH complaints (it certainly has been known to happen.) Or perhaps she has a legitimate claim to pursue (you didn't mention whether anything she's alledging actually occurred.)

You need to let your attorney advise you on how to proceed and what the costs are of defending the claim vs. offering a modest settlement for it all to go away. (If her claim is baloney, I hate to suggest settling as that's undoubtedly what she's counting on but you may need to make a business decision and cut your losses.)

 

[xylene]

"The Attorney"

Whose attorney is that? Is that you everyday business lawyer?

If your regular lawyer charges 360, maybe find a specialist, because you can do better than that. Try 200 - 220 for sex harass defense.