Employer Liability for Harassment by Non-employees

If employees are harassed by a non-employee—a customer or a vendor—is the employer liable? It depends where the employer is located because courts disagree on the standard used to determine liability. The EEOC and a number of courts hold employers liable for harassment by nonemployees if the employers knew or should have known about the conduct but failed to act. Recently, a sales rep claimed to have had unwarranted sexual advances from a customer that created a hostile work environment, but federal appellate court said in this case the employer could not be held liable without a showing that it “intended” for the harassment to occur. Still, employers should not ignore complaints about customer misconduct. #IdeaoftheDay