A recent sexual harassment lawsuit against an Arizona senior living operator reinforces a key lesson for residential care, hospitality, and other client service employers: they can face potentially significant liability for harassment committed by nonemployees. In her latest HR Laws article, Partner Jill Chasson broke down the resulting consent decree and its implications for workplace policies and complaint handlings.

Jill analyzed the Equal Employment Opportunity Commission (EEOC) case against Christian Care Management Inc., which allegedly failed to investigate multiple complaints about a male resident’s sexually explicit comments and vulgar behavior toward female employees. The case resulted in a $250,000 settlement, mandated policy changes and training, and ongoing EEOC oversight.

Jill emphasized that employers may be liable for nonemployee harassment if they know or should know about the conduct and fail to take prompt corrective action. She advised employers to explicitly address third-party harassment in their policies, thoroughly investigate all complaints, and include conduct standards in client agreements that authorize action against the client for engaging in inappropriate conduct toward employees.

Well-versed in the many federal and state laws that govern the workplace, Jill regularly works with employers to develop key policies, resolve difficult personnel issues, and provide guidance regarding legal compliance and risk management. When disputes arise, she represents employers before administrative agencies, in arbitration proceedings, and court litigation regarding a variety of employment-related claims.

Read the full HR Laws article.