When an employee raises a concern about workplace harassment, your response may determine your company’s financial survival. 

Recent cases show how expensive inaction can be. In New York, Consolidated Edison agreed to pay $750,000 after ignoring repeated complaints of harassment. In Nebraska, a jury awarded an employee more than $2.5 million in damages after her employer failed to act. These outcomes send a clear message:  Avoiding or mishandling workplace harassment complaints can leave your business exposed to penalties that range from hundreds of thousands to several million dollars, not counting reputational harm and staff turnover. 

Watch: Ignoring workplace harassment complaints could cost you millions

What does the law require? 

In both New York and New Jersey, once a harassment complaint is made, employers are legally obligated to: 

• Act promptly:  New York expects investigations to be completed within 30 days. 

• Conduct a thorough, impartial investigation:  You must treat all parties fairly, with an impartial investigator gathering all the facts and any corroborating evidence. 

• Provide due process:  You must inform the accused of the allegations and give them a chance to respond. 

• Maintain confidentiality:  Keep the process as private as possible to protect the integrity of the investigation and everyone involved. 

• Prohibit retaliation:  You must safeguard employees who complain or participate in an investigation from any form of retaliation. 

Failing to meet these requirements opens the door to complaints with the Equal Employment Opportunity Commission or your state’s antidiscrimination agency, lawsuits, financial penalties, and reputational harm. 

Where employers go wrong 

Too often, complaints are brushed aside as “workplace drama” or blamed on stress or personality clashes. However, courts don’t see it that way. They look at whether your actions matched the seriousness of the allegations: 

• Did you investigate promptly, fully and impartially? 

• Did you address any misconduct found directly? 

• Did you communicate the outcome to the complaining employee? 

If your answer is “no” to any of the above, your company could be seen as complicit in the harassment and therefore liable for it. 

Not sure how to approach a workplace complaint once it’s been raised? We’ve outlined five best practices for conducting effective workplace investigations here.

The cost of inaction 

Ignoring harassment complaints erodes employee trust, damages workplace culture, and can lead to lawsuits costing employers millions. When investigations are delayed or dismissed, companies often face mandatory policy overhauls, regulator-imposed training programs, and reputational harm that lingers long after the case is closed. On top of that, productivity and morale usually take a hit, leaving the workplace fractured. 

How to protect your business 

• Have clear, written policies and review them annually. 

• Train all employees on how to recognize and report harassment. 

• Document every step of your investigation and response. 

• Communicate with empathy, so employees know their voices matter. 

Takeaway:  When an employee speaks up, the clock starts ticking. A fast, fair, and well-documented investigation is the best protection against lawsuits and the surest way to build trust in your workplace. 

If you need help drafting investigation procedures or training managers on how to respond to complaints, our Peace of Mind Package gives you on-call access to employment counsel. 

If you need to conduct an impartial workplace investigation, call us at  973.787.8442 or email us at legaladmin@alixrubinlaw.com. 

This blog is for informational purposes only. It is not offered as legal advice, nor is it intended to create an attorney-client relationship with any reader. Consult with competent local employment counsel to determine how the matters addressed here may affect you.

Investigating sexual harassment claims