Employees also can be held personally liable for sexual harassment. Therefore, the employee’s personal assets are at risk (1). Employees can be held personally liable for sexual harassment regardless of whether you know or should have known of the conduct.
You must reimburse employees for expenses they incur while performing their duties (2). In Jacobus v. Krambo Corp., a Court of Appeal addressed the question of when an employer must reimburse an employee for defense costs. Two co-workers admitted to joking and trading personal information on sexual matters at work. The court ruled that the employer’s liability for reimbursement is based on whether the conduct was in the course and scope of employment (3). The court noted that because a jury found that the male employee did not engage in sexual harassment and both parties admitted that the sexually explicit comments were consensual, the conduct was “part of the social intercourse that occasionally occurs in modern office settings”.