What To Do If You Face a Sexual Harassment or Wrongful Termination Lawsuit

By Super Lawyers staff | Reviewed by John Devendorf, Esq. | Last updated on July 28, 2025

A business or organization is only as strong as its relationships with its employees. However, even a well-run company may face a dispute from a current or former staff member. When the disagreement rises to the level of employment discrimination, sexual harassment, or wrongful termination, employers must take the issue seriously.

Facing a sexual harassment claim or wrongful termination lawsuit from an employee can be overwhelming and frustrating, especially if you believe that the allegations are without merit. Employers must handle complaints quickly and seriously. An employment law attorney can provide legal advice and help determine the best course of action.

What Constitutes Sexual Harassment?

Sexual harassment can be difficult to define since it comes in many forms The U.S. Equal Employment Opportunity Commission (EEOC) simply defines it as harassment that occurs because of a person’s sex. Though sexual harassment often involves allegations of sexual behavior, such conduct is not required for there to be sexual harassment. Offensive sexual comments or persistent sexualized jokes can suffice.

Under federal law, workplace sexual harassment cases fall into two distinct categories:

  • Quid pro quo
  • Hostile work environment

Quid Pro Quo Sexual Harassment

Quid pro quo sexual harassment involves asking for sexual favors or accepting sexual advances in exchange for some workplace benefits. The term covers adverse employment actions or benefits. An employee can bring a quid pro quo sexual harassment claim if a supervisor offered a promotion in exchange for sexual favors or pressured the worker into giving in to a sexual advance to avoid termination.

It does not matter if the employee consented to or refused the proposition. The act by the supervisor is what constitutes sexual harassment.

Hostile Work Environment Sexual Harassment

A hostile work environment is one in which an ordinary employee would feel unwelcome, intimidated, or uncomfortable based on a protected characteristic. An employee must prove that they were subject to conduct or behavior that was so severe or pervasive that it made it unreasonably difficult for them to perform in the workplace.

Sexual harassment can occur with any gender or sexual orientation. They can involve co-workers, managers, or contractors. Hostile work environment claims can be especially complex because different parties may not always see eye to eye on what type of behavior is inappropriate.

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It is important for employers to understand the limits of the legal defenses in sexual harassment cases. For example, it is not a valid legal defense to argue that the perpetrator had “no ill will” towards the sexual harassment complainant. What matters is the effect of the alleged workplace conduct, not the intent of the alleged harasser.

Likewise, an employer cannot necessarily escape liability in a sexual harassment lawsuit by arguing ignorance. Businesses and organizations have a proactive responsibility to protect their employees. A company that negligently allows sexual harassment to occur and persist could be liable in a lawsuit.

What to Do If You Face a Sexual Harassment Lawsuit

All employers should be knowledgeable of their rights and responsibilities according to state and federal workplace regulations. The primary federal statute prohibiting job-related sexual harassment is Title VII of the Civil Rights Act of 1964. This law applies to all public and private sector employers with at least 15 total employees.

Beyond Title VII, state-based sexual harassment and workplace discrimination laws apply to many companies and organizations. In many jurisdictions, state-level sex harassment laws apply to companies with fewer than 15 employees. Employers facing a sexual harassment claim must take the matter seriously. Here are six basic steps to take if you are facing a sexual harassment complaint:

1. Treat the Complainant With Due Respect

One of the biggest mistakes that an employer can make is to blow off or otherwise mistreat a worker who raised a sexual harassment complaint. Even if you believe that their report of harassment is frivolous or false, you should treat the employee with the highest level of respect. Failure to do so could cause serious legal problems.

2. Make Sure To Notify All Appropriate Parties

Once an employee reports sexual harassment allegations, it is imperative to notify all appropriate parties. Some employers facing sexual harassment complaints run into problems because they don’t share information with key parties. Everyone in the chain of authority needs to know what is happening. This can include executives to human resources managers to insurance companies.

3. Consult With an Employer Defense Attorney

An employer facing a sexual harassment claim should seek professional guidance and support. The best way to defend an employment lawsuit will always depend on the unique circumstances of the case. There is no one-size-fits-all solution to an employment law matter. You must consider a wide range of factors. An employment law attorney will review the allegations and help your company navigate the issues.

4. Promptly Investigate the Allegations

Employers have a legal obligation to investigate reports of sexual harassment in a prompt manner. A proper investigation is to the employer’s benefit.

Don’t wait too long to investigate a sexual harassment claim. You can lose out on key information and witness statements that may help support a defense. A delayed or sloppy investigation may be used as additional evidence of animus against the complainant. Only when an employer has a clear, in-depth, and objective understanding of exactly what occurred will it be in a position to effectively navigate the legal claims process.

5. Cooperate With the EEOC or Any State Agency

The EEOC or a state or local regulatory body may contact the employer. Employers should cooperate with these agencies’ investigative efforts. That is not to say that the EEOC or a state agency is necessarily a disinterested party. Still, it can be a problem if an employer is not responsive to the agency’s inquiries.

6. Consider Options for Resolving the Matter

Finally, individuals with decision-making authority should carefully review the allegations, the evidence, and all other material factors to determine the best course of action. Potential financial penalties for the former employer can include:

  • Back pay
  • Emotional distress damages
  • Attorney fees
  • Punitive damages

Every sexual harassment case is different. In some cases, it may be advisable to work towards a settlement of the employment claim. In other cases, your company should prepare a strong and focused legal defense. With a narrow focus on the facts, an employer defense lawyer will devise the right strategy.

What Qualifies as Wrongful Termination?

Most businesses operate under the at-will employment doctrine, which gives employers wide latitude to make decisions based on what is best for the company.

Without an employment contract, an employer-employee relationship is presumptively at-will. Either party can end the relationship at any time and for virtually any reason. Employers do not need just cause to terminate an at-will employee.

There are very important limitations to an employer’s authority to terminate or discharge workers. Employers cannot remove employees for illegal reasons. A wrongful termination occurs when an employee gets fired or laid off in violation of state law, federal law, or a valid employment contract.

Types of wrongful termination claims involve employment discrimination, reporting sexual harassment, whistleblower claims, or retaliation for protected activities.

What To Do If You Face a Wrongful Termination Claim

Employers must take wrongful termination lawsuits seriously. Employers have considerable discretion when removing workers. However, they also face liability risks if a termination is unlawful under state or federal law.

Even if you believe a wrongful termination lawsuit is baseless, it would be a mistake to simply brush it off as no big deal. Businesses or organizations facing a wrongful termination lawsuit from a former employee should do the following:

  • Take the time to understand the nature of the allegations
  • Gather and organize all relevant documentation, including evidence supporting the permissibility of the termination
  • Consult with a knowledgeable wrongful termination lawyer
  • Consider all options to defend or otherwise resolve the case

Every wrongful termination case carries its own unique set of facts and circumstances. The proper way to respond to a wrongful termination lawsuit will depend on many different factors. Factors include the strength of the evidence and the possible downside liability risks facing the company.

Employers can benefit from professional legal representation. An experienced employment attorney can offer legal advice and help you prepare an effective response.

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