Sexual Harassment by Customers—Employer Responsibility

Could You Be Liable If a Customer Harasses Your Employee?

Employers must address sexual harassment by customers in addition to harassment by other employers. Courts can hold employers accountable if they fail to take reasonable actions to prohibit a hostile work environment and protect an employee. While the “customer is always right” is a maxim that people in business try to follow, under these circumstances the customer is not right.

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No Mandatory Arbitration Under the NYS Anti-Sexual Harassment Law

Will the Provision Hold Up Under Higher Court Scrutiny?

New York’s new anti-sexual harassment law states that New York employers may no longer include mandatory arbitration clauses for sexual harassment claims. Furthermore, settlements regarding sexual harassment claims may not include non-disclosure provisions. The exception would be when the complainant prefers to include such a provision.

Reasons the Arbitration Provision May Not Stand
In a recent case, Mahmoud Latif v. Morgan Stanley & Company, the company moved to compel arbitration of Latif’s claims based on their arbitration agreement.

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