Farhad Novian | July 29, 2024 | Employment Law

Sexual harassment in the workplace is a serious issue that involves unwanted and inappropriate behavior of a sexual nature. This can range from inappropriate comments and jokes to unwanted advances and physical contact. 

If you find yourself facing a sexual harassment case, the average cost of a sexual harassment lawsuit ranges from $30,000 to $200,000. The cost varies based on factors like legal fees, nature of the allegations, jurisdiction, etc.

At Novian & Novian, our experienced workplace sexual harassment lawyers have a thorough understanding of employment law and are here to help you navigate your case. With over 30 years of experience in the industry, you can trust us to give expert legal advice and representation for sexual harassment cases. If you’re facing a sexual harassment lawsuit, contact us today! 

In this blog, we will help you understand the concept of a sexual harassment lawsuit, as well as the average cost and the factors that affect it. 

What is a Sexual Harassment Lawsuit?

A sexual harassment lawsuit is a legal action taken by an employee against an employer or co-worker for behaviors that create an uncomfortable or hostile work environment due to unwanted sexual advances or conduct. A sexual harassment in the workplace lawsuit seeks to hold the responsible parties accountable and typically aim to secure compensatory and punitive damages for the affected employee. Sexual harassment can either be Quid Pro Quo Harassment or Hostile Work Environment. 

Quid Pro Quo Harassment occurs when job benefits such as promotions or continued employment are conditioned on the acceptance of sexual advances. However, Hostile Work Environment involves unwelcome sexual conduct that unreasonably interferes with an employee’s work performance or creates an intimidating, hostile, or offensive work environment.

In addition, sexual harassment could be visual, verbal, or digital. Visual harassment involves displaying sexually explicit images or gestures, while verbal harassment includes unwelcome comments, jokes, or propositions of a sexual nature. Moreover, digital harassment entails unwelcome sexual advances or comments via email, text messages, or social media. 

Legal framework and protections

Under the federal law, the Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on sex, which includes sexual harassment. Other relevant laws and regulations at both federal and state levels that provide additional protections include the California Fair Employment and Housing Act (FEHA), The Occupational Safety and Health Act (OSHA), and the Equal Employment Opportunity Commission (EEOC).

According to these laws, employers are required to take reasonable steps to prevent and address sexual harassment in the workplace. This includes establishing policies, conducting training, and promptly investigating complaints.

In California, sexual harassment is considered any unwelcome sexual advances or conduct, including verbal, visual, and physical acts, that create a hostile or abusive work environment. California law also provides broader protections compared to federal law, covering a wider range of behaviors and offering more robust remedies.

How Much is a Sexual Harassment Lawsuit in California?

In California, the cost of a sexual harassment lawsuit ranges between $30,000 to $200,00, while the cost of a defense settlement is around $75,000.The cost of a sexual harassment claim varies depending on the severity of the harassment, the strength of the evidence, and the legal representation involved. The amount someone can sue for sexual abuse in the workplace depends on the specific circumstances of the case. Sexual harassment settlements and awards in California can cover compensatory damages, punitive damages, lost wages, and emotional distress. 

It’s a known fact that sexual harassment in the workplace is unfortunately common, but many cases are settled out of court to avoid the high costs and public scrutiny of a trial. However, if a settlement cannot be reached, the case may go to court. According to the National Sexual Violence Resource Center, only thirty-eight percent of all women and fourteen percent of men have reported experiencing sexual harassment at work.

All the Costs Associated With a Sexual Harassment Lawsuit for Employers

When dealing with a sexual harassment case, there are lots of associated fees. One of which is attorney fees. Typically, attorneys in California may charge between $100 to $600 per hour. You would also have to deal with settlement amounts that can go over $50,000. Factors affecting settlement negotiations include the severity of the harassment, the evidence available, and the potential impact on the company’s reputation.

Court costs and filing fees are also additional expenses. Filing fees for a lawsuit can range from a few hundred to several thousand dollars, depending on the jurisdiction. In addition, employees who file sexual harassment claims may seek compensation for lost wages and emotional distress. Lost wages can include back pay and front pay, while emotional distress damages compensate for the psychological impact of the harassment.

The average settlement for sexual harassment claims in the United States typically ranges from $30,000 to $50,000, but in California, where protections are stronger, settlements can be higher. Additionally, costs can vary by location within California. For example, major metropolitan areas like Los Angeles and San Francisco may see higher settlement amounts and legal fees compared to smaller cities or rural areas.

How Employers Can Defend Against a Sexual Harassment Lawsuit

As an employer, it is your duty to defend your business from sexual harassment allegations. This helps to maintain a safe work environment and protect your company’s reputation and financial stability.

1. Immediate Actions

Once sexual harassment cases arise within your organization, ensure that any report of harassment is promptly directed to your HR department to initiate proper documentation and response. Then, secure all evidence related to the sexual harassment claim, including emails, messages, and any other documentation. 

When handling such cases, it is best to consult with a qualified workplace sexual harassment lawyer to ensure you have expert legal guidance throughout the process. Contact us at Novian & Novian for sexual harassment lawyers who will represent you in a workplace sexual harassment claim!

You should also inform your employment practices liability insurance (EPLI) carrier about the claim to potentially cover the defense costs and settlements. Additionally, a thorough and impartial internal investigation of the claim must be initiated. During this process, all parties should be interviewed, including the accused, the complainant, and any witnesses. 

2. Legal Actions

After taking immediate action internally, you need to formally respond to the harassment complaint, typically through your legal counsel, addressing the allegations and presenting your defense. The next step would be to engage in the discovery process, in which both parties exchange relevant information and evidence related to the case. 

Often, both parties will explore the possibility of settling the case out of court. This is to avoid high costs and public exposure of a trial. You also get to file pre-trial motions to dismiss parts of the case, limit evidence, or even request a summary judgment if the facts support it. 

However, if the case proceeds to trial, prepare for a rigorous defense where you have to present evidence and witness testimonies to refute the claims. After the trial, a verdict will be rendered. If the outcome is unfavorable, you can consider appealing the decision.

Financial and Non-Financial Consequences for Employers

The harmful effects of a sexual harassment lawsuit extend beyond the courtroom, impacting various parts of an organization. The implications of such a lawsuit encompass both direct financial burdens and indirect negative effects, influencing the company’s reputation, employee morale, and overall productivity.

Direct Financial Burdens

The costs associated with defending a sexual harassment lawsuit are usually high, as they include legal fees for attorneys, filing fees, and court costs. These expenses can range from tens of thousands to hundreds of thousands of dollars.

Another direct financial burden would be sexual harassment settlements. The exact cost usually depends on the severity of the case and the evidence presented. Likewise, court awards can include compensatory and punitive damages, further increasing financial liability.

In addition, employers may see an increase in their insurance, particularly for Employment Practices Liability Insurance (EPLI). Employers found guilty of sexual harassment may also face fines and penalties imposed by regulatory bodies, such as the Equal Employment Opportunity Commission (EEOC).

Indirect Negative Effects

A sexual harassment case can severely damage a company’s reputation, leading to a loss of clients, partners, and business opportunities. Negative publicity can linger, affecting the brand for years.

Furthermore, allegations and lawsuits related to harassment in the workplace can lead to high employee turnover and decreased morale. This makes employees feel unsafe or unsupported, leading to a toxic work environment.

In addition, the disruption caused by a sexual harassment claim can negatively affect productivity. Time spent on legal proceedings, internal investigations, and addressing the fallout can detract from regular business operations.

Operational Consequences

Employers must conduct thorough internal investigations and audits in response to harassment claims. This process can be time-consuming and may require external auditors, increasing costs.

Also, companies may need to revise their policies and procedures to prevent future harassment. This includes updating training programs and ensuring compliance with federal and state laws.

In some cases, companies may need to make significant changes in management to address the issues raised by a harassment lawsuit and to restore confidence among employees and stakeholders.

Long-Term Consequences

After a lawsuit, companies often face ongoing scrutiny from the public, media, and regulatory bodies. This can lead to a continuous need for transparency and accountability.

To prevent future incidents, companies may need to implement cultural changes. This involves fostering an inclusive, respectful work environment and ensuring that unwanted sexual advances and other forms of harassment are addressed promptly and effectively.

Preventive Measures for Employers

Employers must take proactive steps to prevent sexual harassment in the workplace. By implementing comprehensive policies and fostering a culture of respect and inclusion, businesses can reduce the risk of harassment and create a safer, more supportive environment for all employees. 

One key preventive measure is to set up protocols for reporting and handling complaints. As an employer, you should establish clear, confidential, and accessible procedures for employees to report harassment. This ensures that employees understand how to file a complaint and who to contact.

Another preventive measure is to act quickly and effectively when complaints are made. Employers must respond promptly to all complaints of harassment, conduct thorough investigations, and take appropriate action to address and resolve issues.

It is also helpful to promote a work environment that values respect and inclusion. You should also regularly communicate the importance of these values to all employees. 

In addition, develop and enforce thorough anti-harassment guidelines. Employers can do this by creating comprehensive anti-harassment policies that define unacceptable behavior and outline the consequences for violations. Also, ensure these policies are well-publicized and enforced consistently.

Furthermore, provide regular training on harassment prevention. The training sessions should include managers and supervisors with a focus on recognizing, preventing, and addressing harassment. Likewise, update training materials regularly to reflect current laws and best practices.

Need a Workplace Sexual Harassment Lawyer?

Proactively addressing sexual harassment is vital for protecting your employees and your business. Implementing effective preventive measures not only helps to prevent harassment but also demonstrates your commitment to creating a safe and respectful workplace. 

If you’re facing a sexual harassment claim or need assistance in establishing robust preventive measures, seeking professional legal advice is best. An experienced workplace sexual harassment lawyer can guide you through the complexities of the legal process, help you understand your rights and obligations, and ensure that your business is adequately protected.

Novian & Novian is a Los Angeles Employer Defense Practice with expert attorneys specializing in defending employers against sexual harassment claims. We also assist with the implementation of effective workplace policies. Contact us today for expert legal assisstance!