Understanding Hostile Work Environment Lawsuits: A Comprehensive Guide for HR Professionals

As a human resources professional, navigating a hostile work environment report is challenging. If the report escalates to the point of becoming a hostile work environment claim, it has the potential to create liability for employers and headaches for you as a human resources professional. You need to understand your role in both preventing a hostile work environment and what to do if the report becomes a charge (a filing with the U.S. Equal Employment Opportunity Commission) or a claim/complaint (lawsuit).

This guide will help you understand the legal landscape surrounding hostile work environment lawsuits and provide actionable strategies to protect both your employees and your organization.

Employees can bring hostile work environment lawsuits based on various protected characteristics, including:¹

• Disability
• Race
• Pregnancy
• Sexual orientation
• Gender identity
• National origin
• Religion
• Genetic information

State laws often provide broader protections than federal law. For example, while federal law doesn’t protect against weight-based discrimination, Michigan’s Elliott-Larsen Civil Rights Act specifically prohibits discrimination based on weight and height.² Always consult your state’s anti-discrimination laws to understand the full scope of protected characteristics.

Not every workplace conflict constitutes a hostile work environment. The conduct must be:¹

• Unwanted and based on protected characteristics
• Severe and pervasive enough to alter working conditions
• Objectionable to a reasonable person

HR professionals should understand that these situations typically don’t constitute hostile work environments:

• Legitimate performance feedback and disciplinary actions
• General workplace bullying unrelated to protected characteristics
• Mild insults or social exclusion
• Standard management practices, like performance improvement plans

However, if these actions are motivated by an employee’s protected status, they could contribute to a hostile work environment claim.

The first line of defense is your internal process. Employees are generally expected to report harassment internally before pursuing legal action. If your organization has proper policies and procedures, but an employee fails to use them, it may limit their recovery in a lawsuit, as the Ellerth-Faragher defense can be used. This is an affirmative defense that employers may invoke in hostile work environment claims.³

It is important to note that internal reporting may not be required when it’s unrealistic, such as in small family-owned businesses or when the harasser is responsible for implementing anti-harassment policies.

If internal processes fail, employees may file charges with the EEOC and/or state anti-discrimination agencies before pursuing litigation. The agency will:

• Review the claim
• Issue a “right to sue” letter (even if marked “no cause”)
• Sometimes attempt mediation or settlement
• Provide the right to sue letter after 180 days if no resolution is reached

Once employees receive their “right to sue” letter, they can file in court. However, most cases never reach trial:

• The majority of hostile work environment claims settle out of court
• Approximately 72% of summary judgment motions are granted, often favoring employers⁴

Summary judgment is a pre-trial motion in which the moving party seeks “a ruling that the admissible evidence shows there is ‘no triable issue of material fact’ in dispute, judgment, and therefore no reason for trial.”⁴ Employers seeking to prevail on a summary judgment motion may consider that their process for documenting potential hostile work environment claims and other kinds of workplace conflicts is detailed, demonstrating legitimate non-discriminatory reasons for adverse employment action.

In some cases, employees will also bring suits for related torts. One such related tort is intentional infliction of emotional distress (IIED). IEED is a tort that addresses situations when one individual (the tortfeasor, i.e. the person who commits the tort) commits outrageous intentional acts that cause severe emotional distress in someone else. The emotional distress must cause injury to the victim. Savvy lawyers may bring a claim of intentional infliction of emotional distress to increase their potential recovery outside of the damage caps dictated by the federal law.

Understanding potential damages helps HR professionals appreciate the financial risks involved. Federal law caps compensatory and punitive damages for workplace discrimination based on company size:⁵

• Compensatory Damages: Cover actual losses like lost wages, benefits, and emotional distress
• Punitive Damages: Designed to punish particularly egregious conduct

Other Remedies:

• Back pay (including wages, bonuses, benefits)
• Front pay for future losses
• Attorney’s fees
• Reinstatement (rare due to damaged relationships)

It’s important to note that race-based claims under Section 1981 have no damage caps, and state laws vary significantly in their damage limitations.

• Create clear, accessible anti-harassment policies
• Establish multiple reporting channels
• Ensure policies cover all protected characteristics under both federal and state law
• Review and update policies regularly

• Provide regular training for all employees and managers
• Pay special attention to state-specific requirements (like New York and Washington’s enhanced sexual harassment training mandates)
• Document all training participation
• Focus on prevention, not just response

• Establish multiple reporting options to avoid conflicts of interest
• Ensure confidentiality to the extent possible
• Train managers to recognize and properly escalate concerns
• Maintain detailed documentation of all reports and responses

• Take all complaints seriously, regardless of initial impressions
• Conduct thorough, impartial investigations
• Document all steps taken
• Follow up to ensure no retaliation occurs
• Consider interim measures to protect the complainant during the investigation

Remember that hostile work environment situations can sometimes involve criminal conduct. Always prioritize employee safety and involve law enforcement when appropriate.

Given the complexity of these cases and the potential for significant financial exposure, consider establishing relationships with experienced employment attorneys who can:

• Review your policies and procedures
• Provide guidance during investigations
• Help navigate the settlement process when appropriate
• Represent the organization if litigation becomes necessary

Because federal damage caps can be limiting, many employees and their attorneys pursue claims under state law when possible. Understanding your state’s anti-discrimination landscape is crucial for risk assessment and case management.

While hostile work environment lawsuits can be complex and costly, they are largely preventable through proactive HR management. The key takeaways for HR professionals are:

1. Develop robust policies and training programs that exceed minimum legal requirements
2. Create multiple, accessible reporting channels and ensure employees feel safe using them
3. Respond quickly and thoroughly to all complaints, documenting every step
4. Stay current on federal and state law changes that may expand protected classes or remedies
5. Partner with legal counsel to ensure your approach is both compliant and effective

Remember, the goal isn’t just legal compliance—it’s creating a workplace where all employees can thrive without fear of harassment or discrimination. By taking a proactive approach to prevention and response, you protect not only your organization from legal liability but also foster the kind of inclusive culture that drives business success.

The investment in comprehensive anti-harassment programs pays dividends not just in avoided litigation costs, but in improved employee retention, productivity, and your organization’s reputation as an employer of choice.

Enrolling in Tulane University Law School’s online MJ in Labor & Employment Law (MJ-LEL) will give you the skills you need to manage legal issues that arise in your day-to-day work more effectively. You’ll engage in comprehensive coursework that touches on both state and federal employment law. Through the program’s targeted curriculum, you’ll be well-prepared to advocate for employees and support a positive work environment in your organization.

Schedule a call with the admissions team today to learn how Tulane Law School’s online MJ-LEL program can transform your career. Or, if you’re ready to apply, check out the admissions requirements to get started.