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The Definition of 'Management-Level' Employee Under Title VII
The United States Court of Appeals for the Third Circuit recently decided a sexual harassment case that has consequences for nearly every employer, regardless of industry. This decision serves as an important reminder for all employers regarding the reporting and proper handling of discrimination and harassment complaints.
On June 8, 2009, the Third Circuit decided Huston v. The Procter & Gamble Paper Products Corp., 568 F.3d 100 (3d Cir. 2009), a case involving allegations under Title VII of the Civil Rights Act of 1964, as amended, in which the plaintiff, Priscilla Huston, sought to impute liability for co-worker sexual harassment to her employer, Procter & Gamble (“P&G”). Under Title VII, an employer can be held directly liable for maintaining a sexually hostile work environment if a management-level employee has actual or constructive knowledge that such an environment exists in the workforce and does not take prompt remedial measures. In finding for P&G, the Third Circuit clarified the definition of a “management-level” employee, for the purpose of imputing liability to employers under Title VII, in a manner favorable to employers. The lessons from this case in identifying who is a management-level employee and who is tasked with receiving complaints of harassment should be heeded by all employers.
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