7th Circuit Relied On Employee Handbook To Determine Constructive Notice In Sexual Harassment Case
The recent ruling by the 7th Circuit Court of Appeals in Nishchan v. Stratosphere Quality, LLC , reminds employers that their policies may provide “constructive notice” to them of harassment incidents. Stratosphere Quality, LLC (Stratosphere), provides third party inspections and quality control services to car manufacturers. Plaintiff worked her way up the ranks of Stratosphere, eventually becoming a project supervisor. Defendant was a liaison for Chrysler, one of Stratosphere’s clients, working to oversee some of the Stratosphere’s inspection procedure. The plaintiff alleged the employee of her employer’s client sexually harassed her “relentlessly” by making lewd comments and rubbing himself against her. The alleged harasser was not considered a supervisor of the plaintiff, but rather a coworker. The defendant argued correctly that the company was not liable for coworker’s actions if the victim never reported it. Here, it is undisputed plaintiff made no complaints until...