How to Handle Workplace Harassment: Legal Steps for Employers

Does your company have the necessary systems and procedures to manage workplace harassment claims effectively?

Workplace harassment legal and financial consequences continue to escalate annually as EEOC recovered $664 million for claims in 2023 marking a 30% rise compared to 2022.

Here’s the truth…

The majority of employers lack adequate preparation to address harassment situations which exposes them to expensive legal battles while risking reputation damage and creating hostile work environments.

This situation can be improved.

Business protection alongside employee safety from workplace harassment impacts can be achieved through the legal support of a Tennessee employment law lawyer.

What You’ll Discover:

1. Understanding Workplace Harassment: Types and Impacts
2. Legal Obligations for Employers
3. Creating Effective Anti-Harassment Policies
4. Proper Investigation Procedures
5. Taking Appropriate Corrective Action
6. Prevention Through Training

Understanding Workplace Harassment: Types and Impacts

Workplace harassment represents a significant national problem that impacts millions of workers throughout America.

Nearly nine out of ten workers in the United States have faced workplace discrimination based on factors such as race, gender identity, physical appearance, disability status, age, or religious beliefs.

Harassment generally falls into several categories:

• Sexual harassment includes unwelcome sexual advances and other behavior of a sexual nature. The EEOC receives 78% of workplace sexual harassment complaints from women.

• Racial harassment involves making offensive remarks or taking discriminatory actions against individuals because of their race. The workplace experiences racial harassment which impacts 48% of Black men and 36% of Black women.

• Two-thirds of American workers older than 50 face negative treatment because of their age.

• Disability harassment takes place when employers mock disabled employees or deny them reasonable accommodations.

• Religious harassment involves discriminatory behavior towards people because of their religious practices or beliefs.

Organizations that overlook these problems experience reduced employee productivity alongside increased staff turnover, expensive legal disputes, and negative impacts on their public image. Workplace discrimination reports most frequently cite retaliation (51.6% of cases), racial discrimination (28.6%), and age discrimination (15.6%), which affect minority groups and the LGBTQ+ community at disproportionate rates.

Legal Obligations for Employers

Workplace harassment requires knowledge because ignorance creates liability.

Under federal and state laws while sometimes local laws require employers to take action against workplace harassment through prevention and effective response measures. Title VII of the Civil Rights Act forms the foundation of anti-harassment law by prohibiting discrimination based on race, color, religion, sex and national origin.

Employers are required by law to actively prevent harassment and to deal with it effectively when incidents take place. Courts generally look at whether an employer:

1. Exercised reasonable care to prevent harassment
2. Took immediate and appropriate corrective action
3. Provided an effective complaint procedure

Additional anti-discrimination laws exist in multiple states which offer more extensive protections including Tennessee. An employment law professional will guide your business toward full compliance with all necessary regulations.

Creating Effective Anti-Harassment Policies

Your harassment prevention strategy must start with developing a clear and comprehensive anti-harassment policy. The EEOC received over 500,000 discrimination complaint calls and 81,055 new charges in 2024 which demonstrates the need for your policy to be robust.

Your policy should include:

• Clear definitions of prohibited conduct
• According to a 2025 survey only 51% of employees indicated they would report incidents under their real names.
• Investigation process outline
• Confidentiality statement
• Non-retaliation clause
• Consequences for violations

All employees need to have easy access to your policy which should be included in handbooks as well as posted in common areas and reviewed during the onboarding process.

Proper Investigation Procedures

Over fifty-two percent of employees have observed improper behavior happen in their work environment. The response to harassment reports determines its ultimate impact.

Investigations must be prompt, thorough, and impartial. Here’s a step-by-step approach:

1. Begin immediate action by arranging a prompt meeting with the complainant.
2. Select an impartial investigator
3. Create an investigation plan
4. Conduct thorough interviews
5. Gather all relevant evidence
6. Analyze findings objectively
7. Document the entire process

During the process all involved parties must be kept confidential and protected from retaliation. A low satisfaction level exists among employees regarding employer responses to harassment reports as 32% of women expressed dissatisfaction with outcomes while only 20% of men did so.

Taking Appropriate Corrective Action

You must take appropriate corrective action after your investigation confirms that harassment happened. Employers often fail to perform well during this stage of the harassment response process.

The corrective action depends on how severe and frequent the harassment is but must always follow these guidelines:

• Prompt
• Effective at stopping the behavior
• Proportional to the misconduct

Corrective actions for harassment can include warnings and sensitivity training as well as suspension or termination. After taking corrective measures, make the outcome known to both parties and monitor to confirm harassment has ceased.

Prevention Through Training

Prevention is always better than reaction. Workplace bullying affects 30% of the workforce which equals more than 48 million Americans and since 65% of the bullies are bosses or executives training becomes crucial.

Effective harassment prevention training should:

• Be regular and comprehensive
• Use interactive scenarios
• Cover all forms of harassment
• Include bystander intervention techniques

The 2025 survey indicated that harassment was witnessed by 52% of Gen Z employees but only 33% of Baby Boomers which demonstrates a generational awareness gap. The training you deliver needs to connect with employees from every generation.

Managers require enhanced training to identify harassment and understand their increased duty to stop it.

Building a Harassment-Free Culture

Although training and policies matter, the key to a harassment-free workplace is establishing an appropriate culture.

• Leadership by example
• Zero tolerance for inappropriate behavior
• Encouraging reporting without fear
• Promoting diversity and inclusion
• Regular climate check-ins
• Swift response to issues

The true nature of your workplace culture emerges from everyday behaviors that management allows to continue.

Almost half of employees do not know about their employer’s anti-discrimination policies. Ensure your team doesn’t become part of this troubling statistic. A respectful workplace emerges from clearly communicated expectations and visible enforcement of those standards.

The Bottom Line

Workplace harassment prevention goes beyond meeting legal requirements because its goal is to establish an environment where all employees feel secure and honored.

Ignoring harassment leads to overwhelming expenses which organizations must address.

• $664 million in EEOC claims in 2023
• 30% of workers experiencing bullying
• Immeasurable costs to morale and productivity

To minimize harassment risks you must create exhaustive policies while performing detailed investigations and taking proper corrective measures to cultivate a workplace environment based on mutual respect.

Proactive measures against workplace harassment need implementation before a crisis occurs. Protect your business and employees by taking immediate protective actions.

In matters of workplace harassment prevention measures prove far more valuable than remedies.