As an employer, there are numerous legal pitfalls which can be avoided through proper training and prevention measures. Sexual harassment is one such pitfall. Not only must you be worried about sexual harassment occurring in your workplace, you must also be concerned with the devastating legal and financial repercussions which can result from even a single such occurrence.

Sexual harassment can be a devastating factor for your business. It can destroy relationships within the workforce, cause good employees to walk out the door, or even force you to close your doors after losing a legal battle on a claim.

Many employers make the mistake of underestimating the effects that a single legal claim can have on their business. Supreme Court rulings on the subject of sexual harassment have placed the burden of proof squarely on the shoulders of employers. In other words, an employer has a legal obligation not only to show it has addressed any claims of harassment that have been made but to have taken sufficient preventative action as well. Even in cases where no official claim has been presented, an employer can be held liable, especially if a supervisor observed behaviors and failed to address them.

Even if you address a claim of sexual harassment in the best possible and most timely manner, you can still be held legally, and therefore financially, accountable for the harassment. If you’ve failed to train supervisors, managers, and even average employees on the subject, you may find yourself in very trepid waters should an employee or former employee file a claim within the legal system.

In instances where supervisors are the ones doing the harassing, the company can easily be held liable for the behavior, even if there is a well-established and expertly documented policy against such behavior. Even in some instances where the average employee is harassing another, the company can be held liable, especially if the behavior is not addressed in the appropriate manner or in a timely fashion by a supervisor.

Educating the average employee on how to report harassment is an essential step in safeguarding your business against legal suits and financial liability. Educating supervisors on how to handle complaints is also a means of protecting your business.

While in this day and age it may seem like people should have the common sense not to get themselves or your company into a legal pickle, the fact of the matter is that many still don’t realize what actually constitutes sexual harassment. And unfortunately, many supervisors, without proper training, can make their own judgment calls which may or may not be accurate.

Supervisors who don’t fully understand what is considered sexual harassment under the law often allow employees to engage in risky behaviors which can put the company in harm’s way.

Regardless of how a claim of harassment within your organization may turn out, you are obligated to follow through with an investigation into the matter. The manner in which that investigation is conducted can influence the outcome of any subsequent legal issues which might arise from the claim.

In other words, every supervisor within your organization must understand that you have a policy in place regarding sexual harassment and a standard investigation procedure for looking into each and every claim. That investigation should be conducted by your human resources staff or by your legal counsel in some circumstances. The average supervisor may take the initial claim but the matter should be passed off to those more familiar with procedure and without any personal investment in the outcome of any findings.

Most employees don’t realize that sexual harassment can take a number of forms, and even the majority of supervisors are surprised to learn a company can be held liable for sexual harassment in the workplace even if they were unaware that it is, or at one time was, occurring. The vast majority of supervisors don’t realize that they too can be held legally liable for allowing sexual harassment to go on under their charge.

Your company’s risk management plan should include a strict sexual harassment prevention policy, a standard investigation procedure, and consistent application of both. Additionally, you should implement supervisory and management sexual harassment prevention training and conduct training sessions on a regular schedule. This should include new leadership training as well as refresher courses for your long-term supervisors and managers. Documenting participation in any such training is another essential step in managing risk.

Maureen Treacy Lau, (MA, Multicultural Education) is an educator, producer and executive with an extensive background producing award-winning instructional videos, public television programs and innovative university projects. She is the founder of Lumina Productions, Inc. and Lumina Training which specializes in sexual harassment training videos.