Question 13:You manage human resources for a bank.Recently, your bank found $10,000 missing from the bank's safe.Since your security measures do not show any evidence of someone outside the bank stealing the money, your company believes that the theft was conducted by an employee with access to the safe.Since there are several employees with access to the safe, the bank decides to put up security cameras in the safe, as well as in the offices of the individuals with access to the safe.Because you don't want to alert the thief to the investigation, none of these individuals are informed of the investigation or the installation of the security cameras.The security cameras utilize motion detection to turn on - they do not run 24 hours a day, but switch on and record if they detect movement.Only you, as the human resources manager, and the President of the bank, have access to the camera recordings.

One night the cameras in one of the offices is tripped by movement and record an employee of the bank (John), coming into his office at night and having sex with another employee (Sarah).John is a VP for the bank, and Sarah is a lower level employee.However, Sarah works in a different division than John and John has no direct authority over Sarah.Your bank does not have a written employee handbook policy that addresses sexual relationships at work.

You are asked to sit in at a meeting with John and the President.When confronted about the sexual relationship, John at first denies it.However, the President shows him the camera footage verifying the sexual encounter.John is furious.He screams at the President "How dare you put a camera in my private office without my permission or knowledge!You have violated my privacy rights, and you are going to hear from my lawyer about this.Further, we don't have any formal policy against having sex with other employees, so if you fire me for the sexual relationship I'm also going to sue you for wrongful termination!" The President responds "The cameras were put in place solely to try to find whoever had stolen money from the bank.That office does not belong to you, and thus the bank had every right to put a camera in the office without your knowledge.Further, I can fire you for whatever reason I want!"

After finding out John was caught, Sarah has now threatened to sue the bank.She alleges that she has been sexually harassed by John.Sarah admits that John wasn't physically forcing her to have sex with him, but she alleges the relationship was not entirely consensual because he implied on numerous occasions that he might have a job opening for her brother, who is currently looking for work, if she will continue her relationship with him. Additionally, she alleges that John frequently made crude sexual comments directed at here while other employees were present and frequently groped her at work.

As human resources manager, you know that your company has a written sexual harassment policy which specifically prohibits this type of conduct.Additionally, the policy creates a sexual harassment procedure by which any employee who believes they are being sexually harassed may report the sexual harassment so it can be investigated and dealt with.You have distributed this policy to all employees, including John and Sarah, and required them to acknowledge in writing that they have received the policy.Additionally, you conduct annual sexual harassment training for all employees.This is the first time that you have heard of these allegations from Sarah, and she has never previously told you or any other manager about the alleged sexual harassment or reported the harassment through the channels created by the formal sexual harassment policy.

Assuming that Sarah's allegations are true, analyze and explain whether sexual harassment has occurred here.Additionally, discuss whether or not your company will be liable for John's conduct and any defenses your company may have against liability for this sexual harassment.