In workplaces across the United States, the issue of sexual harassment is a pervasive problem that is often ignored or unaddressed by employers. A staggering 5 million employees face sexual harassment at work every year.
Beyond the moral obligation of establishing a secure work environment, addressing this issue proves financially beneficial for employers. In this blog post, we will dive into the legal aspects of this topic and shed light on the importance of workplace sexual harassment training.
What is Workplace Sexual Harassment?
Workplace sexual harassment violates Title VII of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, religion, national origin, and sex. According to the U.S. Equal Employment Opportunity Commission (EEOC), “Harassment is illegal when it is so frequent or severe that it creates a hostile or offensive work environment or when it results in an adverse employment decision (such as the victim being fired or demoted).”
Financial Implications of Sexual Harassment Claims
For employers, the financial consequences of neglecting workplace sexual harassment can be significant.
According to a report by the University of Massachusetts Amherst, an average of 8,147 non-disclosure agreement (NDA)-exempt claims are filed annually. The expenses incurred in defending a sexual harassment claim over a three-year span include settlements averaging $36,798 per plaintiff, with trial costs soaring to $217,000. These figures don’t account for legal fees, back pay, front pay, or compensatory damages.
Furthermore, instances of sexual harassment often lead to heightened employee turnover, diminished productivity, and increased absences and sick leave usage, all of which incur costs for employers.
Moreover, according to The Conversation, “Companies with the highest incidences of sexual harassment underperform the U.S. stock market by approximately 19.9 percent the subsequent year,” highlighting the negative impact of such cases on business success.
Why is Sexual Harassment Training Necessary?
In the face of these alarming statistics and potential financial liabilities, it becomes imperative for employers to take action.
Massachusetts strongly recommends sexual harassment training for all employers and requires a sexual harassment policy to be written out for companies of six or more employees. Whether or not your state requires employers to provide sexual harassment training, we strongly recommend being proactive on this issue to create a more positive work environment, maintain productivity, and shield yourself from liability for harassment suits.
By addressing sexual harassment, employers can minimize their financial and reputational risks associated with lawsuits, settlements, and damage to the company’s name.
How GRIP HR Can Help
GRIP HR, Deland, Gibson’s consulting firm, is a valuable resource, offering self-paced, online employer training courses. Ranging from eighteen minutes to 2 hours, these courses cover a range of topics, including sexual harassment prevention. The program, available both online and through a one-hour in-person workshop, provides multi-state training on preventing and addressing sexual and other harassing conduct in the workplace.
In conclusion, the importance for employers to address sexual harassment in the workplace cannot be overstated. Not only is it an employers’ ethical duty to provide employees with safe and respectful working environments, but it is also a way to mitigate legal risks, protect organizational reputation, and foster a culture of inclusivity and productivity.
By implementing initiatives like sexual harassment training, employers can truly make strides in fostering environments where everyone feels empowered to succeed, without the burden of harassment and discrimination.
Contact managing partner, Co-Founder of GRIP HR for more information:
Ryan Tipping rtipping@delandgibson.com
Providing Peace of Mind Through Proactive Service
Deland, Gibson: A Trusted Choice, Five Star Accredited independent insurance agency. Established in Massachusetts in 1900, Deland, Gibson is a 4th generation family-run insurance agency that has thrived working as a trusted advisor for its client base. We work with individuals and businesses to lower their Total Cost of Risk. We analyze a client’s direct and indirect costs and implement risk reduction plans to address areas of business, hazard, or strategic risk.
McCann, C., Tomaskovic-Devey, D., & Lee Badgett, M. V. (n.d.-a). Employer’s Responses to Sexual Harassment. UMass Amherst. https://www.umass.edu/employmentequity/employers-responses-sexual-harassment
Shiu-Yik Au. (2019, September 2). The real cost of workplace sexual harassment to businesses. The Conversation. https://theconversation.com/the-real-cost-of-workplace-sexual-harassment-to-businesses-122107
