Editor’s Column: The Wrong Way to Respond to Sexual Harassment Allegations

The case In re: Beth V., an appeal to the New York State Workers' Compensation Board, involved a dispute over whether settlement proceeds from an employment lawsuit should offset workers' compensation payments based on the same facts. The legal question about the offset is not the focus here — the important issue is how the New York State Office of Children and Family Services (OCFS) responded to Beth V.’s reports of sexual harassment.

Beth V. was hired by OCFS as a youth division aide and assigned to work in the camp kitchen. A resident, M.E., who had kitchen duty as part of a facility work program, brought a notebook that Beth V. confiscated after he admitted he was writing sexually explicit notes about her and making crude gestures. She gave the notebook to the on-duty youth division aide, and M.E. reacted angrily when he discovered it was missing.

After the incident, Beth V. told supervisors and coworkers she felt unsafe and feared physical or sexual harm from M.E. A few days later, while she was logging out with her back to a door, M.E. attacked her from behind, choking, punching, and raping her at knifepoint, then forcing her to surrender her vehicle keys before abducting her from the camp. Beth V. escaped during a phone stop and reported the crime to local police. She later sued OCFS and ultimately settled the civil case for $646,000, receiving roughly $430,000 after fees and deductions; the workers' compensation carrier later claimed a right to offset those settlement proceeds.

From trial experience, punitive damages in a private-employer case might have been substantially higher, but the main takeaway is procedural: claims of sexual harassment and threats must be taken seriously and investigated promptly.

Employers and HR professionals looking for coverage options can review policy materials such as Sexual Harassment Insurance and Sexual Harassment Defense Coverage (EPLI) to understand liability and defense resources.

Bottom line: take all reports of sexual harassment seriously. During my career I represented three women in situations similar to Beth V.’s; in two of those three cases, a timely and thorough investigation and appropriate follow-up could have prevented a tragic outcome.

Don Phin, Esq. is Vice President of Strategic Business Solutions at ThinkHR and has more than three decades of HR and employment litigation experience. For more information, visit ThinkHR or, if you need help evaluating coverage or claims, talk to an agent.

Frequently Asked Questions

What should an employer do when an employee reports sexual harassment?

Begin a prompt, confidential investigation, take interim steps to protect the reporting employee, and document all actions and findings.

Can a worker sue an employer and still receive workers' compensation?

Yes, an employee can pursue a civil lawsuit and workers' compensation benefits, though insurers or boards may assert offsets in some circumstances; specific outcomes depend on the facts and applicable law.

How can employers reduce the risk of violent incidents after harassment reports?

Implement clear reporting procedures, perform timely investigations, apply appropriate discipline or reassignment, and provide safety planning when threats are reported.

Do employment practices policies cover sexual assault claims?

Some employment practices liability and related policies provide defense and liability coverage for harassment claims, but coverage varies by policy and circumstance.

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