97-282 that companies may be held vicariously liable if supervisors sexually harass workers even if the employees do not report the harassment and suffered no tangible loss. By making employers liable for supervisors' sexual harassment encourages an employer, as no other regime does, to exercise the greatest possible care in screening prospective managers and in training, supervising and monitoring supervisory personnel. It gives employers an incentive to put effective policies and training programs in place. And experience has shown these policies and programs work. Companies that have implemented sexual harassment training programs have reported reduced numbers of claims that develop into lawsuits.
Society has a great stake in ensuring that the alarming rate of sexual harassment goes down.
That does not include additional costs for litigation expenses, executive time and tarnished public image should a case wind up in court. It is, therefore, imperative that employers do everything within their power to discourage, if not eliminate, all incidents of sexual harassment. Making them liable when supervisors abuse their power over subordinates is one small step in this direction. If they are made responsible, employers will have the incentive to create a workplace free of harassing behavior.