JULY 26, 2005 Dangerous Liaisons: Preference for Paramours Can Create Hostile Environment for Other Employees By Jeff Tanenbaum and Sheila Kiernan Overview In a highly anticipated and groundbreaking decision, the California Supreme Court unanimously decided that an employee may have an actionable hostile environment sex harassment claim based on a manager’s consensual sexual affairs with several other subordinates. In Miller v. Dep’t of Corrections, the California Supreme Court held that an “isolated instance of favoritism on the part of a supervisor toward a female employee with whom the supervisor is conducting a consensual sexual affair ordinarily would not constitute sexual harassment.” However, when such “sexual favoritism in a workplace is sufficiently widespread it may create an actionable hostile work environment for those not engaged in the affairs.” Under such circumstances, the court found that favoritism toward paramours may convey the demeaning message to employees that they are viewed by management as “sexual playthings” or that “the way required for women to get ahead in the workplace is by engaging in sexual conduct with their supervisors or the management.” The Facts of the Case Over a period of approximately seven years, a Department of Corrections warden engaged in concurrent sexual affairs with three subordinate employees. The warden allegedly caused his sexual partners to be transferred to join him at his new post and upon joining him, two of them were promoted over the plaintiffs. One of the paramours, who enjoyed an unprecedented pace of promotion bragged that she would receive another promotion because if she was not awarded the promotion, she’d “take him down” because “she knew every scar on his body.” Outraged employees, including plaintiffs, attributed the promotions and advancement to the sexual affairs and began to ask whether they needed to sleep their way to the top. In addition, the warden and his paramours were reportedly seen fondling one another at several work-related social gatherings, and they played out jealous scenes about his relationships with the other paramours in front of plaintiffs and other employees. 1 of 3 The warden also allegedly promised and granted unwarranted and unfair employment benefits to women based on his affairs with them. One of the unfair employment benefits granted to one of the employees was, according to the court, the power to abuse other employees who complained about the affairs. And, when a plaintiff allegedly complained to the warden about that abusive treatment, he responded that he was finished with that particular woman and should have chosen the plaintiff—a comment the plaintiff interpreted to mean that he should have chosen her for a sexual affair. The court determined that there was sufficient evidence to establish triable issues of material fact, and reversed the trial court’s granting of summary judgment and the Court of Appeals affirmation of summary judgment. The underlying summary judgment had been based, in part, on findings that plaintiffs were not treated any differently than male employees and were not themselves subject to sexual advances. The court did not accept this as a defense in this case. Instead, the court found that widespread sexual favoritism could not only block the way to merit-based advancement for plaintiffs, but also cause them to be subject to harassment. What Should Employers Do Now? Prudent employers should heed this decision as a warning. Miller makes clear that employers need take appropriate steps to ensure a work environment free from hostility for all employees, when employees and/or supervisors are engaged in consensual sexual relationships. Training to prohibit and prevent sex harassment is now mandatory for all supervisors in California, but employers should consider providing such training to their entire workforce. Employers should also review and update their policies—particularly sex harassment, antifraternization and anti-nepotism policies. While employers should not have to act as the “dating police,” Miller makes clear that ignoring the impact of even consensual relationships can sometimes result in a cognizable claim for sex harassment. Anti-fraternization policies are one possible solution, but they can be problematic. Such policies run counter to human nature and can be difficult to enforce. An alternative solution, when an employer is aware of a consensual relationship at work, can be to require the individuals involved to sign a consensual relationship agreement, (popularly known as a “love contract”). Such agreements spell out the standards of behavior and professionalism required of the individuals involved in the relationship. In addition, these agreements set forth the standards for appropriate behavior with respect to others in the workplace— including not showing favoritism to a paramour. Such love contracts are not appropriate in all circumstances, but may be useful in some cases. ___________________ 2 of 3 For more information on this issue or other employment law matters, please contact Jeff Tanenbaum (at 415-984-8450 or [email protected]), Sheila Kiernan (at 415984-8257 or [email protected]) or your Nixon Peabody attorney. The foregoing summary is provided by Nixon Peabody for education and informational purposes only. It is not a full analysis of the matter summarized and is not intended and should not be construed as legal advice. This publication may be considered advertising under applicable laws. If you are not currently on our mailing list and would like to receive future publications of Employment Law Alert or if you would like to unsubscribe from this mailing list, please send your contact information, including your name and e-mail address, to [email protected] with the words “Employment Law Alert” in the subject line. 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