The Definition of 'Management-Level' Employee Under Title VII

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.