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State court limits harassment liability
The Supreme Court ruling shields employers from lawsuits if the businesses had policies in place to prevent harassment and systems for victims to report it.
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Businesses in the state are applauding a Minnesota Supreme Court decision they say will spare them from becoming the targets of numerous sexual harassment suits.
Friday's decision states that companies aren't necessarily liable for sexual harassment that occurs in the workplace as long as they have a policy in place to prevent such behavior and a reporting system for victims of sexual harassment.
The decision stemmed from a suit brought by Judy Frieler against her employer, Carlson Marketing Group Inc., charging that she was sexually harassed and assaulted by another employee on four occasions while working for the Plymouth-based company in February and March 2005. There was no claim that the company was aware of the harassment when it was occurring.
According to court documents, the company conducted an investigation after Frieler reported the incidents. The employee who allegedly had harassed Frieler denied the charges and resigned a short time later, citing "health issues and a desire to spend time with family."
Frieler's suit charged that the company was responsible for the harassment.
But the court noted that, even though the company had procedures in place for reporting such actions, Frieler did not report them until more than two weeks after the first incident.
According to the decision, Frieler initially feared that she would lose her job and chances for advancement if she reported the alleged harassment and assault.
A company that takes reasonable measures to prevent such behavior and tries to correct it when it occurs should not be held liable for such actions, the court said. The ruling upheld federal standards of liability for sexual harassment cases, and rejected the ones under the Minnesota Human Rights Act.
In light of the ruling, the court also sent the case back to Hennepin County Court for another hearing.
"My clients are breathing a huge sigh of relief," said Joe Schmitt, an attorney representing the Minnesota Chamber of Commerce. "Imagine a company that has 50,000 employees. The idea that one can control what every one of those 50,000 employees does is a myth."
Had the state Supreme Court ruled differently, Schmitt said, "there would have been a dramatic increase in the number of sexual harassment lawsuits in Minnesota, and many of those lawsuits would have been successful."
Attorneys representing Frieler could not be reached Friday for comment.
Norman Draper • 612-673-4547
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