The following is not meant to be legal advice.
For a hostile environment case, it is difficult to allege harassment with one casual remark. A one time occurrence is not considered pervasive, though it may violate a company’s harassment prevention policy. If the remark violates a company policy, the individual may be subject to discipline, but may not have violated the law.
What happens if someone accused of harassment quits? The employer might have difficulty controlling the situation. The employer sometimes does not terminate the accused because if the person quits, the employer might have difficulty not settling with the victim.
In California, a manager involved in harassment conduct is strictly liable. This is perhaps why there is mandatory training for supervisors for certain employers in California. If the harassment conduct is between co-workers, there is notice liability. This is because co-workers are unlikely to have power over each other in the employment decision. However, there is the question of power when companies start doing 360 reviews? In notice liability, the employer becomes liable if it does not do anything to prevent further harassment conduct in the future. For instance, if training is given to a person who has supposedly acted in a harassing manner, and the alleged harassment continues, the employer should take actions to discipline the employee including a warning or termination.

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