Now, such things as profanity and rude comments are no longer viable actions for SH claims. I feel as though I let a good employee go based on the word of one individual without eyewitness accounts. I guess it is better to err on the side of caution and continue to let employees go based on the word of an individual who might or might not have a claim for SH and risk a wrongful termination suit rather than face a SH suit. Even under the old law, there are some serious problems with the way this situation was handled. Not every case of harassment is illegal, especially when two people of the same gender are involved, since the federal law does not recognize sexual orientation harassment as illegal.
Religious harassment is, however.
If the complaint was that sexual advances were made, in some circuits same sex sexual advances are illegal, in others they are not. Sometimes you can and should make decisions based on one person's word against another. Make a decision, based on facts. Sometimes it is best to get an attorney involved to do the investigation. You say you had reason to doubt the accuser.